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

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

(AOFM) will today sell A$2.0bn of the 2.75% 21 November 2029 Bond, issue #TB154.

The line was last sold on 2 June 2020 for A$2.0bn. The sale drew an average

yield of 0.8691%, at a high yield of 0.8725% and was covered 3.3175x. There were

37 bidders, 16 of which were successful and 8 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 2.9%.

- This auction represents the 3rd tap of the line in the calendar year, and only

the 2nd tap in the new high liquidity, large issuance size backdrop. Last week's

ACGB '31 tender wasn't as strong as some of the more recent tenders, and only

saw A$1.0bn issued. Still, that auction still passed smoothly enough. Anyhow,

that auction serves as a bit of a warning, particularly with the close proximity

to the JEFU & the upcoming ACGB '51 launch. The line is one of the shorter XM

basket constituents, so may have a bias to cheapen closer to basket exclusion.

- ASWs elevated, EFPs tight, most expect little change in these dynamics short

term, with a bias for extensions of the recent trends if anything.

- Results due at 0200BST/1100AEST.