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The Australian Office of Financial.....>

AUSSIE BONDS
AUSSIE BONDS: The Australian Office of Financial Management (AOFM) will auction
A$400mln of 2.00% 21 December 2021 bonds on Friday, issue #TB151 which is part
of the underlying basket for the 3-Year future (YMH8).
- The line was last sold on December 12 for A$500mln, the sale drew an average
yield of 2.073%, a high yield of 2.0750% with 15% of bids at the high and was
covered 8.54.
- The issue has A$17.0bln outstanding with a modified duration of 3.68 years.
- The AU/US 3-Year yield spread sits at around a 29bp discount, just off of its
recent 30.286bp low. Looking at the domestic 3-/10-Year spread, the current
79.5bp level is well off of the mid-40bp level seen back in December, and just
shy of the recent high of 83.197bp.
- On an ASW basis the line trades slightly rich against 2s and 5s.
- Results due at 0000GMT/1100AEDT

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