REPEAT: AUSSIE BONDS: The Australian Office of.......>

AUSSIE BONDS: REPEAT: The Australian Office of Financial Management will sell

A$400mln of 4.50% 2033 bonds on Friday, issue #TB140.

- The line has A$13.1bln outstanding with a modified duration of 11.52 years.

The issue was last sold on Sept 11, the auction drew an average yield of

2.9089%, a high yield of 2.9125% and was covered 2.52x by 20 successful bids

from 37 total.

- In the grey market the issue currently yields 2.863%. Yields in Australia have

declined recently after hitting the highest levels in 7 months in early October.

Aussie bonds are attractive to investors as the US curve flattens, 5/30-Year US

spread yesterday hit the flattest levels since 2007 as markets price in the

disconnect between FOMC hike expectations and expectations for subdued inflation

on the horizon. After coming close to 60bp in September the AU/US 10-Year spread

has plunged, last at 24.2bp.

- Results of the Aussie auction due at 0000GMT/1100AEDT on Friday.