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

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

(AOFM) will today sell A$3.0bn of the 2.25% 21 November 2022, issue #TB153. The

line was last sold on 6 April 2020 for A$2.0bn. The sale drew an average yield

of 0.2450%, at a high yield of 0.2450% and was covered 4.7325x. There were 68

bidders, 2 of which were successful and 1 was allocated in full. Amount allotted

at highest yield as percentage of amount bid at that yield was 98.8%.

- While we usually cover the auctions in more detail than this, it is worth

noting that the line currently yields 0.25%, bang on the RBA's 3-Year yield

target. Expect take up to be supported by the notion that the RBA's YCC

effectively backstops auctions with up to 3-Years until maturity & this

proximity to the aforementioned target, even with the Bank tapering back its

daily ACGB purchase amount (as that is to do with it being comfortable with ACGB

market liquidity/functioning and how YCC is progressing thus far). It always has

the capability to up purchases again if the 3-Year yield deviates from target.

- Results due at 0200BST/1100AEST.