The Australian Office of Financial.....>

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

sell A$150mln 1.25% Aug 2040 inflation linked bonds, issue #CAIN413.

- The line was last sold on July 18 for A$150mln, the sale drew an average yield

of 1.1158% and was covered 3.57x.

- The issue currently has A$2.8bln outstanding with a modified duration of 19.64

years.

- On CPI/Inflation ANZ say: "We expect the Q3 CPI data (to be released on

Wednesday 25 October) to confirm that inflationary pressures are gradually

lifting. Our forecast is for headline CPI to rise by 0.8% q/q, sharply higher

than the previous quarter, but largely lifted by electricity and gas prices. A

result in line with our forecast would see annual inflation rise to 2.0% y/y.

The average of the underlying inflation measures is forecast to have risen by

0.4% q/q in Q3, weaker than the previous quarter, but still sufficient to lift

annual growth a touch."