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

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

(AOFM) will today sell A$1.0bn of the 2.25% 21 May 2028 Bond, issue #TB149. The

line was last sold on 18 November 2019 for A$500mn. The sale drew an average

yield of 1.1098%, at a high yield of 1.1100% and was covered 4.3600x. There were

29 bidders, 11 of which were successful and 1 was allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 57.7%.

- A lack of recent tenders (just the 2 in 2019) coupled with the recent dynamics

in the Australian bond space render previous tenders for the line redundant in

terms of comparable inference. More broadly, auctions in the space have of

course been well received in recent times, aided by the RBA's ACGB market

operations and noted jump in liquidity (once again fostered by the RBA).

- The line last yields ~0.77%, 21bp or so off the YtD lows.

- The line's ASW spread sits at elevated levels in terms of recent history.

- Also worth noting that the RBA holds over 11% of the outstanding stock of this

line.

- Results due at 0200BST/1100AEST.