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RBC note that "The AOFM launched.......>

AUSSIE BONDS
AUSSIE BONDS: RBC note that "The AOFM launched their new 1% Dec-30 ACGB TODAY at
a range of 7-10bp. Note that our previous modelling assumed a slightly lower
coupon of 0.75%, so taking this into account plus some general curve/EFP moves,
our baseline estimate of fair value has tightened from EFP+7bp to EFP+6.5bp. We
expect a final deal price of 8-9bp depending on how much volume the AOFM decides
to go for. We think a ~$12bn deal should price around 9bp, while a sub $10bn
deal should price around 8bp."
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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