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

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

(AOFM) will today sell A$2.0bn of the 2.75% 21 Apr 2024 Bond, issue #TB137. The

line was last sold on 15 January 2020 for A$400mn. The sale drew an average

yield of 0.8481%, at a high yield of 0.8500% and was covered 6.5375x. There were

40 bidders, 9 of which were successful and 4 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 39.2%.

- Recent auctions in the belly of the curve have been strong, although the

degree of pricing through mid has weakened in recent weeks.

- The RBA's YCC program has successfully tethered the 3-Year point to its target

of 0.25%, which should prove supportive for this auction, with a focus on ~4.0bp

or so of roll-down, assuming the target is successfully maintained over the

coming year or so, with the line last yielding ~0.29%.

- Results due at 0200BST/1100AEST.