The Australian Office of Financial.....>

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

sell A$150mln of 1.25% Feb 2022 index linked bonds, issue CAIN409. The issue is

the on the run 5-Year index linked note.

- The line was last sold on June 13, the auction drew an average yield of

0.2776%, covered 3.63x. In the greay market the issue currently yields 0.384%,

down 0.2bp on the session. The security yields below the 3-month average of

0.413%.

- The 5-Year breakeven rate is last at 1.727%, at the previous sale the

breakeven was 1.639%. Breakevens have are near the top end of the range of 1.77%

to 1.59% seen since March.

- Domestic CPI for Q2 was weaker than expected at 1.9% on an annual basis,

though recent communication from the RBA has been positive with the economy

growing in line with their estimates. Expectations for inflation have risen

slightly after Chinese inflation data was higher than consensus.

- Results due at 0200BST/1100AEST.