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 May 2028 Bond, issue #TB149.

- The line was last sold on August 27 2018 for A$500mn. The sale drew an average

yield of 2.5482%, a high yield of 2.5500%, with 17.5% allotted at the high yield

and was covered 5.140x. There were 28 bidders, 14 of which were successful and 6

were allocated in full.

- The line has $26.8bn outstanding with a modified duration of 8.59 years.

- The Bond forms part of the futures basket for XMU8 & XMZ8.

- The line's yield has operated in a ~12bp range since the most recent auction

last sitting at the high of the aforementioned range, ~2.60%.

- The line doesn't look particularly attractive in relative value terms, when

compared to nearby issues, with the forward yield measure looking particularly

rich, although many expect the outperformance of 10-Year AU paper vs. U.S. Tsy

counterparts to continue. Benchmark interest should begin to move to the Nov

2028 line soon.

- Results due at 0200BST/1100AEST.