The Australian Office of Financial.....>

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

sell A$150mln of 1.25% 21 August 2040 I/L Bonds bonds, issue #CAIN143.

- The line was last sold on 12 December 2017 for A$150mln. The sale drew an

average yield of 0.9236%, a high yield of 0.9300% with 12% allotted at the high

yield and was covered 2.45x. There were 21 bidders, 19 of which were successful

and 12 were allocated in full.

- The line has $A3.1bln outstanding with a modified duration of 19.48 years.

- The CPI outlook in Australia remains muted, with the RBA continuing to adopt a

glass half empty on view on price pressures, this could keep a lid on demand for

inflation protection in the short to medium term. Westpac are of the view that

BEIs will move slightly higher but believe that there is little reason to factor

in an inflation surge.

- Results due at 0000GMT/1100AEDT.