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, issue #CAIN143.

- The line was last sold on 27 February 2018 for A$150mln. The sale drew an

average yield of 1.0266%, a high yield of 1.0450% with 40% allotted at the high

yield and was covered 2.37x. There were 37 bidders, 23 of which were successful

and 21 were allocated in full.

- The line has $A3.25bln outstanding with a modified duration of 19.46 years.

- Although the Australian inflation outlook remains somewhat subdued, a modest

increase in the RBA's confidence on the longer-term outlook for inflation has

been noted in recent weeks. 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 0100BST/1100AEDT.