The Australia Office of Financial......>

AUSSIE BONDS: The Australia Office of Financial Management (AOFM) will sell

A$900mln of 2.25% May 2028 bonds on Wednesday, issue #TB149.

- The line was last sold on Nov 1, the auction drew an averag yield of 2.7273%,

a high yield of 2.725% and was covered 5.2957x by 18 successful bids from 44

total.

- The issue has A$19.4bln outstanding with a modified duration of 9.54 years and

part of the underlying basket for 10-Year future.

- The AU/US 10-Year spread continues to narrow, last at 18.8bp and breaching the

20bp level for the first time since June earlier this week. While the hedged

yield for Aussie 10-Year debt has dropped recently as AUD/JPY decline. Though

demand for Aussie paper remains high these factors have converged and hit

bid/cover ratios at auctions in this maturity.

- Results due at 0000GMT/1100AEDT.