The Australian Office of Financial.....>

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

sell A$1.0bn of the 2.25% 21 November 2022, issue #TB153.

- The line was last sold on 10 August 2018 for A$1.0bn. The sale drew an average

yield of 2.1839%, a high yield of 2.1850%, with 41.2% allotted at the high yield

and was covered 4.6710x. There were 45 bidders, 13 of which were successful and

5 were allocated in full. - The line has $12.9bn outstanding with a modified

duration of 4.02 years.

- The Bond does not form part of the futures basket for YMU8, but will form part

of the basket for YMZ8. The line has operated in a ~7bp range in the time since

the most recent auction, last dealing ~3bp off the recent low at 2.151%.

- The line looks more attractive than the nearby Jul' 22, which seems rich on

almost all measures, although this is likely aided by the lack of recent

issuance, while it is likely that the Nov '22 line will be tapped frequently

owing to its limited size. Nov '22 offers decent carry and roll on a comparative

basis.

- Results due at 0200BST/1100AEST.