Free Trial

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

AUSSIE BONDS: AUCTION PREVIEW: The Australian Office of Financial Management
(AOFM) will today sell A$400mn of the 2.75% 21 Apr 2024 Bond, issue #TB137. The
line was last sold on 11 December 2019 for A$500mn. The sale drew an average
yield of 0.7492%, at a high yield of 0.7500% and was covered 3.5400x. There were
24 bidders, 10 of which were successful and 2 were allocated in full. Amount
allotted at highest yield as percentage of amount bid at that yield was 48.3%.
- The line currently yields ~0.86%, ~6bp above the rough mid-point of its
3-month range. 5-Year swap spds also hover around the mid recent range.
- The last 2 auctions of this line have gone well, with the bond being the
longest dated of both the YMZ9 & YMH0 baskets.
- Monday's auction of A$800mn worth of ACGB 2.75% 21 November 2029 wasn't
particularly well received, given that it was the AOFM's first round of business
of 2020, but participants were likely eying next week's opening of the 21 May
2032. That shouldn't be as much of a problem for the shorter dated line on offer
- Results due at 0000GMT/1100AEDT
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.