The Australian Office of Financial.....>

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

sell A$300mn of the 2.25% 21 November 2022 Bond, issue #TB153.

- The line was last sold on 20 June 2018 for A$700mn. The sale drew an average

yield of 2.2716%, a high yield of 2.2725%, with 89.9% allotted at the high yield

and was covered 4.0314x. There were 32 bidders, 8 of which were successful and 3

were allocated in full.

- The line has $A11.6bln outstanding with a modified duration of 4.15 years.

- The auction kicks off the AOFM's FY18- 19 issues with a nominal target of

A$70bn, against last years realized A$75.5bn (target A$74.0bn).

- The line sits around 5bp richer than it did at the time of the most recent

auction.

- The line looks slightly cheap to fair on a forward yield, zero-coupon &

z-spread basis. RBC see "potential for at least another 1bp of performance

relative to surrounding bonds ahead of the mid-Sep futures roll (when the line

enters the 3-Year Bond futures basket)."

- Results due at 0200BST/1100AEST.