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

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

(AOFM) will today sell A$2.0bn of the 1.25% 21 May 2032 Bond, issue #TB158. The

line was last sold on 28 April 2020 for A$2.5bn. The sale drew an average yield

of 1.0722%, at a high yield of 1.0725% and was covered 3.2020x. There were 52

bidders, 12 of which were successful and 3 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 63.2%.

- The line last yields ~1.07%, hovering around the cheapest outright levels seen

since late March.

- Yield pickup against 10s could support the auction today, although the supply

will not directly benefit from tomorrow's coupon payments. Nonetheless, auctions

in this area of the curve have been well received in recent times and should be

easily digested by the market.

- Results due at 0200BST/1100AEST.