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CBA: New ACGB Nov-31 Should Price Around EFP+8.5bp

AUSSIE BONDS

Ahead of assuming the role as one of the lead managers CBA noted that "this is the third syndication of the financial year, and it's only August. The move is a surprise as the AOFM only flagged five syndications across the entire year. The August-November period is historically a period of cash outflow for the Government and the like volatility in wages in 2019-20 might be manifesting in larger than normal tax refunds at this time. If the Nov-31 achieves a size similar to recent 10Y syndications it may immediately be larger than the May-32 (currently $A16.25bn).We'd expect a coupon at 1% and an EFP at around 7.5-10.5 for price talk, with a final pricing at around 8.5bp."

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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