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

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

(AOFM) will today sell A$800mn of the 2.75% 21 Nov 2029 Bond, issue #TB154. The

line was last sold on 11 November 2019 for A$500mn. The sale drew an average

yield of 1.3024%, at a high yield of 1.3025% and was covered 4.1700x. There were

30 bidders, 8 of which were successful and 2 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 90.7%.

- The AOFM opens its book for '20, choosing to stand by the recent trend of

heavy issuance in the 9-12 Year zone. The line has cheapened from recent

richest, on the back of the de-escalation re: U.S./Iran, with stronger than exp.

local data also helping the move in the last few sessions, last yields 1.2365%.

- It is worth remembering that the AOFM plans "to launch the 21 May '32 bond

line via tender in the week beginning 20 Jan '20. Further details will be

provided on Friday 17 Jan '20." This may hamper demand at this particular

auction. Looking ahead, RBA MonPol & the economic impact of the of the bushfires

will likely drive price action of the medium term, with shorter term focus on

the aforementioned issuance of the new ACGB. Results due at 0000GMT/1100AEDT.