The Australian Office of Financial.....>

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

sell A$150mln of 0.75% 21 November 2027 I/L Bonds bonds, issue #CAIN414.

- The line was last sold on 13 March 2018 for A$150mln. The sale drew an average

yield of 0.8208%, a high yield of 0.8250% with 33.3% allotted at the high yield

and was covered 3.0667x. There were 42 bidders, 18 of which were successful and

13 were allocated in full.

- The line has $A3.45bln outstanding with a modified duration of 9.22 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, while BofAML like entering long break even trades.

- Results due at 0200BST/1100AEST.