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AUSSIE BONDS
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 September 24 2018 for A$800mn. The sale drew an
average yield of 2.7220%, a high yield of 2.7250% and was covered 2.8363x. There
was 35 bidders, 16 of which were successful and 9 were allocated in full.
- The line has $15.1bn outstanding with a modified duration of 9.41 years.
- The Bond forms part of the futures basket for XMZ8.
- The line's yield has operated in a ~15bp range in the time since the most
recent auction, last sitting around the middle of that range at 2.719%.
- The line looks a little expensive in Z-spread terms when compared to the
nearby April 2029, with the same holding true in ASW terms. The same can be said
when the Bond is compared to the May 2030 line.
- Results due at 0100BST/1100AEDT.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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