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

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

(AOFM) will today sell A$100mn of the 2.50% 20 September 2030 I/L Bond, issue

#CAIN408. The line was last sold on 9 April 2019 for A$150mn. The sale drew an

average yield of 0.3300%, at a high yield of 0.3300% and was covered 5.3067x.

There were 43 bidders, 1 of which was successful and 1 was allocated in full.

Amount allotted at highest yield as percentage of amount bid at that yield was

100%.

- Breakevens have bounced from the cycle lows seen in Aug/Sep, but still remain

subdued from a historical perspective, with little in the way of underlying

inflationary drivers apparent in the broader economy (stagnant national wage

metrics, ex-public sector, amid questions over the health of the labour market,

as well as a lack of retail impulse, despite recent RBA rate cuts and fiscal

loosening).

- RBA Governor Lowe's speech re: unconventional MonPol, due later today, will be

key for the space.

- Results due at 0000GMT/1100AEDT.