AUCTION PREVIEW: The Australian........>

AUSSIE BONDS: AUCTION PREVIEW: The Australian Office of Financial Management

(AOFM) will today sell A$800mn 2.50% 21 May 2030, issue #TB155. The line was

last sold on 6 November 2019 for A$800mn. The sale drew an average yield of

1.2603%, at a high yield of 1.2625% and was covered 3.5562x. There were 34

bidders, 17 of which were successful and 9 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 23.9%.

- The AOFM reverts to its "typical" issuance zone after a tap of a slightly

shorter dated bond earlier this week. The frequency of taps in the 9-12 Year

sector FYtd doesn't seem to have hindered the strength of the auctions.

- The line's yield hovers around the middle of its recent (3-month) ~40bp range,

last 1.1195%, which should attract solid enough demand, given the prospects for

conventional & potentially unconventional RBA easing in 2020.

- The line sits towards the cheaper end of its 12-month range vs. swaps.

- Results due at 0000GMT/1100AEDT.