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

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

(AOFM) will today sell A$800mn of the 1.50% 21 Jun 2031 Bond, issue #TB157. The

line was last sold on 9 December 2019 for A$1.2bn. The sale drew an average

yield of 1.1992%, at a high yield of 1.2025% and was covered 2.0175x. There were

32 bidders, 22 of which were successful and 14 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 4.3%.

- The AOFM reverts to "trend" with this round of issuance, after Monday's

smaller (potentially at the request of dealers) 2033 tap.

- Coronavirus worry has driven the line back to historical outright rich levels

in recent sessions, last sitting just off extremes at 0.937%. The broader

risk-off feel has left the curve with a flattening impetus, while 10s have

underperformed against their U.S. Tsy counterpart, as that spread moves back out

to levels not seen since early 2019.

- The line's ASW spread sits in the middle of its recent range.

- Results due at 0000GMT/1100AEDT.