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

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

(AOFM) will today sell A$3.0bn of the 0.25% 21 Nov 2024 Bond. This will be the

first tap of the line, after it was issued via syndication on April 15. The AOFM

is going back to the well tapping the line as it looks to take advantage of the

recent strong run of demand for ACGBs at auction. As a reminder, the April 15

syndication saw a record A$13.0bn issued, after the AOFM received A$25.8bn worth

of bids (1.985x). The syndication was priced at 0.47% (+19 EFP), which was

viewed as attractive. The line has richened since then, last printing at ~0.39%,

given EFP levels at issuance, demand at syndication, relative richness of the

nearby April '24 line and the continued success of the RBA's YCC program. Bond

has also tightened in EFP terms, sitting much closer to the fair value estimates

banded about by various desks.

- Also worth noting that several desks expect the bond to be included in the

YMZ0 basket, which could create a self-enforcing stream of demand at upcoming

auctions.

- Results due at 0200GMT/1100AEST.