In a note released late Wednesday......>

AUSSIE BONDS: In a note released late Wednesday the ANZ noted that "in the

coming year, the AOFM plans to issue A$70bln in nominal bonds. We expect close

to A$20bln of that to be issued in the 2030 tenor (May & December) while 3-, 10-

and 20-Year baskets will also see issuance. The sub-5-Year tenor trades 40bp

through the US, and is impacted by the cost of repo, thus limiting demand for

shorter dated debt, in our view. Unlike recent years where every single one of

the AOFM's 24 nominal bond lines was tapped, issuance for 2018-19 and beyond is

likely to be concentrated on basket bonds. If we expect the issuance profile to

be similar to recent years, the bulk of supply will be concentrated in the new

bond lines that are slightly longer than the basket (a September 2023 as well as

May 2030 and December 2030) and the new 2041 infill line. This should keep

baskets cheaper but present opportunity in the off-the-run issues."