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

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

(AOFM) will today sell A$2.0bn of the 3.25% 21 Apr 2025 Bond, issue #TB139. The

line was last sold on 29 May 2020 for A$1.0bn. The sale drew an average yield of

0.3859%, at a high yield of 0.3875% and was covered 5.6920x. There were 35

bidders, 6 of which were successful and 3 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 54.8%.

- This auction comes in the wake of Wednesday's soft ACGB '32 offering, which

drew the lowest cover ratio seen at an ACGB auction since the RBA's YCC ops got

underway. That being said, this is a different sector of the curve, with the

focus on the rolldown to 3s (all the time that the RBA's YCC is ongoing).

- Outright yields sit just off all time richest levels, last printing 0.38%.

- ASW elevated (based on recent history), moving back into positive territory.

- The 2-/5-/10-Year fly hovers around the middle of the range observed since the

start of April.

- Larger issuance size vs. prev. auction may skew metrics.

- Results due at 0200BST/1100AEST.