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

today.

- Results due at 0000GMT/1100AEDT