The Australian Office of Financial.....>

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

sell A$1.0bn of the 2.75% 21 November 2029 Bond, issue #TB154

- The line was last sold on 01 August 2018 for A$1.0bn. The sale drew an average

yield of 2.7136%, a high yield of 2.7150%, with 61.3% allotted at the high yield

and was covered 2.8780x. There were 55 bidders, 20 of which were successful and

9 were allocated in full

- The line has $13.3bn outstanding with a modified duration of 9.57 years

- The Bond does not form part of the futures basket for XMU8, but does form part

of the basket for XMZ8.

- The line operates 7bp off of the recent lows in terms of yield, last 2.623%,

with the lower for longer RBA outlook supporting demand. Conversely, a larger,

more frequent projected auction schedule to bring the size of the line up may

weigh.

- The line isn't particularly compelling in relative value terms. Looking at the

2s-5s-10s fly the strategy continues to hover just above the recent cycle low.

- Results due at 0200BST/1100AEST.