The Australian Office of Financial.....>

AUSSIE BONDS: The Australian Office of Financial Management (AOFM) to sell

A$500mln of 2.00% May 2021 bonds, issue #TB151.

- The line was last sold on July 21, drawing an average yield of 2.1996%,

covered 6.58x. The issue has A$29.29bln outstanding with a modified duration of

3.37 years.

- In the grey market the yield has fallen 1.8bp today to 2.116%.

- The auction of the 3.25% April 2029 paper on Wednesday saw weak demand

compared to previous issues. That issue is slightly rich on the curve at -4bp on

an ASW basis, but is near the high of its recent range on a Z-spread basis at

-4bp. 

- The 2.00% 2021 is trading at -8bp on an ASW basis, but also looks cheap on the

Z-Spread at -8bp, near the top of the 3-Month range.

- Results due at 0200 London/1100 Sydney.