The Australian Office of Financial.....>

AUSSIE BONDS: The Australian Office of Financial Management (AOFM) will today

auction A$900mln of 3.25% April 2029 bonds, issue #TB138.

- The issue was last sold on July 5 for A$800mln, the auction drew an average

yield of 2.72%, covered 4.4675x. This is the biggest sale size of the issue

since its initial syndication for A$3.25bln on October 10 2016.

- The line has A$17.3bln outstanding with a modified duration of 9.66 years. The

issue currently yields 2.76%, up 2.2bp on the session.

- The short end remains firmly anchored on RBA dovish policy but the belly has

been more prone to movement. That being said the sector has been resilient

despite dovish commentary from the RBA. US tsys have seen recent declines after

the US/North Korea tensions eased slightly, this has bled over into Aussie bonds

and could prompt dip buying. The issue still looks fairly rich on the curve

compared to recent averages at -5bp on an ASW basis, but this is unlikely to

impact demand. The proximity of Aussie wage data later today and labour market

data tomorrow could keep players on the sidelines but demand is still expected

to be robust. Results due at 0200BST/1100AEST.