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

AUSSIE BONDS
AUSSIE BONDS: AUCTION PREVIEW: The Australian Office of Financial Management
(AOFM) will today sell A$2.0bn of the 0.25% 21 November 2024 Bond, issue #TB159.
The line was last sold on 9 June 2020 for A$2.0bn. The sale drew an average
yield of 0.3865%, at a high yield of 0.3875% and was covered 4.0350x. There were
36 bidders, 15 of which were successful and 6 were allocated in full. Amount
allotted at highest yield as percentage of amount bid at that yield was 50.0%.
- The line last yields 0.37%, providing decent enough rolldown to the 3-Year
sector, given the RBA's YCC policy, which should support the auction.
- ASWs sit at elevated levels.
- The more than ample amount of liquidity in the system should also support
takedown, as should the lower (relative) level of ACGB supply this week.
- All in all the auction should pass smoothly.
- Results due at 0200BST/1100AEST.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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