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PREVIEW: The Australian Office of......>

AUSSIE BONDS
AUSSIE BONDS: PREVIEW: The Australian Office of Financial Management (AOFM) will
today sell A$150mn of the 3.00% 20 September 2025 I/L Bond, issue #CAIN407.
- The line was last sold on 12 March 2019 for A$100mn. The sale drew an average
yield of 0.3898%, at a high yield of 0.3900% and was covered 7.7100x.
- There were 30 bidders, 2 of which were successful and 1 was allocated in full.
Amount allotted at highest yield as percentage of amount bid at that yield was
90.0%.
- The line has A$7.293bn outstanding, with a modified duration of 5.83 years.
- 5-Year breakevens (used as a proxy here) hover ~4.5bp above all-time lows at
writing, printing at 1.296%, even after the latest RBA decision resulted in the
Bank leaving rates unchanged, exhibiting a greater tolerance for below target
inflation than in the past.
- Results due at 0200BST/1100AEST
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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