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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.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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