PREVIEW: Nov '25 Supply Due

The Australian Office of Financial Management (AOFM) will today sell A$600mn of the 0.25% 21 November 2025 Bond, issue #TB161. The line was last sold on 4 December 2021 for A$1.5bn. The sale drew an average yield of 0.3276%, at a high yield of 0.3300% and was covered 5.9633x. There were 43 bidders, 19 of which were successful and 9 were allocated in full. Amount allotted at highest yield as percentage of amount bid at that yield was 9.8%.

• This week's auctions have been easily digested by the market in the grander scheme of things, although bid/cover ratios haven't been quite as firm, as participants weigh up the value proposition stemming from the latest round of cheapening and steepening vs. potential headwinds for longs surrounding the broader reflation trade narrative.
• The RBA's earlier than expected announcement re: the extension of its bond buying scheme is supportive as is the record level of surplus cash lodged on E/S accounts at the RBA.
• The recent cheapening on the 2-/5-/10-Year butterfly may also entice relative value plays,
• Results due at 0000GMT/1100AEDT.