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

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

(AOFM) will today sell A$800mn of the 3.25% 21 April 2029 Bond, issue #TB138.

The line was last sold on 30 September 2019 for A$400mn. The sale drew an

average yield of 0.9509%, at a high yield of 0.9525% and was covered 4.5375x.

There were 30 bidders, 14 of which were successful and 6 were allocated in full.

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

25.9%. The line sits in the XMZ9 basket, and will form part of the XMH0 basket.

- This represents the first round of "normal" size issuance of this line since

Aug, which may bring about challenges, although the uncertainty created by the

Trump admin's latest choices/commentary re: trade may provide at least some

underlying demand, especially when you consider the sell-off/steepening that

came before. The line looks relatively cheap vs. its nearby, longer dated

counterparts, but that is probably a result of it being closer to 9-Years until

maturity than 10. Conversely, shorter nearby paper is relatively cheap vs. the

line. The line's ASW spread sits at elevated levels based on its recent history.

- Results due at 0000GMT/1100AEDT.