The AOFM announced last week that......>

AUSSIE BONDS: The AOFM announced last week that they would sell a new November

2029 Bond via syndication at some point this week, the sale will correspond with

the redemption of A$9.6bln of 5.5% 21 January 2018 issue.

- Based on current market rates ANZ say they expect the issue to have a 2.75%

coupon and be priced at a discount and see fair value over the April 2029 issue

at 3.25bp, they add this implies an exchange for physical (EFP) sprad of at a

fair value of 7.25bp over the front month 10-Year future (XMH8) of 7.25bp.

- ANZ say they expect the issue to be around A$8bln, and add that issues that

get sold via syndication are typically tapped frequently throughout the year.

- ANZ strategists note that they see the issue at -1.5bp on an ASW basis, adding

that this syndicated deal will put the AOFM ahead of target in terms of 2018

funding/issuance programme which should positively impact ASW spreads.