The Australian Office of Financial.....>

AUSSIE BONDS: The Australian Office of Financial Management will today auction

A$900mln of 2.75% Nov 2028 bonds, issue #TB152. The line is part of the

underlying basket for 10-Year futures XMZ7.

- The line was last sold on November 15 for A$1bln. The auction drew an average

yield of 2.6867%, a high yield of 2.6875% with 58.2% allotted at high, covered

3.455x.

- The issue has A$20.3bln outstanding, with a modified duration of 9.45 years.

- The AU/US 10-Year spread continues to hold near the lwoest levels sinec May

2017 at 16.5bp as the market continues to unwind the expectations of a more

hawkish RBA rate path, a wave of buying in interbank bills on Tuesday saw

futures rise to contract highs as the OIS implied odds of hike by Q3 2018

dropped below 30%.

- Demand could be impacted by expectations of a new Nov 2029 issue from the AOFM

during the current issuance programme.

- Results due at 0000GMT/1100AEDT.