The Australian Office of Financial.....>

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

sell A$1.0bln of 2.25% 21 November 2022 Bonds, issue #TB153.

- The line was last sold on 13 December 2017 for A$1.0mln. The sale drew an

average yield of 2.2218%, a high yield of 2.225% with 3% allotted at the high

yield and was covered 3.532x. There were 32 bidders, 17 of which were successful

and 10 were allocated in full.

- The line has $7.0bln outstanding with a modified duration of 4.44 years.

- The domestic 3-/10-Year spread has widened in February, sitting around 71bp

last, although the Aussie curve has continued to outperform the US, with the

AU/US 10-Year spread now at circa -10bp.

- RBC recently suggested that the "Nov-22s stand out as 1.5-2bp cheap to fair

and have the best carry & roll on the curve by some margin (8.4bp/3mth). We

expect plentiful supply to continue in order to build the line size up however,

limiting potential for outperformance in the near term."