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

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

(AOFM) will today sell A$1.0bn of the 3.25% 21 Apr 2025 Bond, issue #TB139. The

line was last sold on 4 May 2020 for A$1.5bn. The sale drew an average yield of

0.3888%, at a high yield of 0.3950% and was covered 5.4333x. There were 41

bidders, 15 of which were successful and 7 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 11.7%.

- An interesting AOFM offering to end the week, with headwinds via the lack of

hedgability with futures, given the distance from the YM basket vs. attractive

roll down perspectives given the RBA's YCC policy. Outright, the line yields

0.396%, grinding slowly away from the mid-May richest levels.

- The 2-/5-/10-Year fly has ground away from recent lows (in ~2 month terms)

over the last couple of weeks.

- ASWs have flirted with positive territory in recent weeks, and sit at elevated

levels in terms of recent history.

- Results due at 0200BST/1100AEST.