Comments from the AOFM: "Total gross...>

AUSSIE BONDS: Comments from the AOFM: "Total gross issuance will again be lower

next year highlighting 2016-17 as the peak year for issuance. For the nominal

bond program of around $70 billion, which includes issuance to fund buybacks,

the focus will be on issuing to maintain the average term-to-maturity of the

portfolio and to meet demand. The three and 10-year futures baskets are where we

tend to see most demand, but we will also be looking to support the 20-year

futures basket. The nominal program will involve establishing a new 5-year

maturity, two new 12-year maturities; and a new 23-year maturity. The timing of

each remains open except for the first of the 2030 maturities, which has been

announced for a tender next week. The tender volume has not been settled because

we are seeking feedback on this but in any case we are mindful of needing to

give space between building this line over the coming months to at least $8-10

billion and then establishing the next one. The second 2030 will probably be

established by syndication but not until the second half of the fiscal year."