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

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

(AOFM) will today sell A$1.0bn of the 1.50% 21 June 2031 Bond, issue #TB157. The

line was last sold on 6 May 2020 for A$2.5bn. The sale drew an average yield of

0.9369%, at a high yield of 0.9375% and was covered 3.5240x. There were 51

bidders, 13 of which were successful and 5 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 74.3%.

- The line last yields 0.94%, holding around the middle of the range witnessed

since the March vol. passed. Abundant liquidity is set to continue to support

demand at tender, with another $A50bn+ book seen in the ACGB Nov '25 syndication

earlier this week providing the latest signal of healthy demand for ACGBs

(albeit in a different area of the curve). The time elapsed since the most

recent tender should also support demand, as should the relatively small size of

the tender (at least going by recent standards). ASWs remain elevated.

- Results due at 0200BST/1100AEST.