The Australian Office of Financial.....>

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

sell A$500mln of 4.75% 21 April 2027 Bonds, issue #TB136.

- The line was last sold on 04 October 2017 for A$700mln. The sale drew an

average yield of 2.7655%, a high yield of 2.7675% with 67% allotted at the high

yield and was covered 4.4643x. There were 39 bidders, 10 of which were

successful and 5 were allocated in full.

- The line has A$29.2bln outstanding with a modified duration of 7.45 years.

- The domestic 3-/10-Year spread widened in February, and now sits around 71bp,

while the Aussie curve has continued to outperform the US, with the AU/US

10-Year spread now at circa -7bp.

- The line is included in the basket for the 10-Year bond future (XMH8) which

should support demand, although RBC point out that the "line is the the shortest

basket bond and will drop out at the next roll. This appears to be largely

reflected in the price already: they have cheapened up to be comparable to the

Apr-26s on a forward-yield basis."

- Results due at 0000GMT/1100AEDT.