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

AUSSIE BONDS: AUCTION PREVIEW: The Australian Office of Financial Management
(AOFM) will today sell A$1.0bn of the 1.25% 21 May 2032 Bond, issue #TB158. The
line was last sold on 18 March 2020 for A$500mn. The sale drew an average yield
of 1.2852%, at a high yield of 1.2900% and was covered 3.5960x. There were 40
bidders, 7 of which were successful and 4 were allocated in full. Amount
allotted at highest yield as percentage of amount bid at that yield was 20.0%.
- Today's auction may not be as strong as those witnessed last week: Monday's
chunky round of coupon payments may not come soon enough to support today's
auction, while the huge 2024 syndication seen earlier this week may have
diverted cash into the belly of the curve already.
- Also worth remembering that this bond doesn't fall into the XMM0 basket.
- The line's ASW spread briefly bumped into positive territory earlier this
week, but has retraced from 12-month highs (although still remains elevated over
that horizon).
- Results due at 0200BST/1100AEST.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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