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

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

(AOFM) will today sell A$2.0bn of the 2.50% 21 May 2030 Bond, issue #TB155. The

line was last sold on 27 May 2020 for A$2.0bn. The sale drew an average yield of

0.8919%, at a high yield of 0.8925% and was covered 3.3875x. There were 40

bidders, 13 of which were successful and 4 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 51.7%.

- The return of a (close to) outright 10-Year auction after a hiatus spanning a

few weeks will likely draw demand, while the auction itself comes in the wake of

last week's strong round of tenders. The line currently yields ~0.88%, hovering

around the mid-point of the range witnessed since early April.

- ASWs remain elevated, albeit a little shy of the recent high. On the curve,

the 3s10s slope sits around the mid-point of the range observed since early

April, with the 10s30s slope steepening during the last few sessions in the wake

of the AOFM outlining an ACGB 2051 syndication, which is set to come to market

before the end of September.

- Results due at 0200BST/1100AEST.