The Australian Office of Financial.....>

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

sell A$1.0bn of the 3.25% 21 April 2029 Bond, issue #TB138.

- The line was last sold on October 03 2018 for A$500mn. The sale drew an

average yield of 2.6465%, a high yield of 2.6475% and was covered 4.970x. There

were 37 bidders, 12 of which were successful and 4 were allocated in full.

- The line has $23.2bn outstanding with a modified duration of 8.90 years.

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

- The line's yield has operated in a ~20bp range in the time since the most

recent auction, last sitting a little below the middle of that range at 2.6662%.

- The line looks pretty fair valued in Z-spread & ASW terms, a little rich vs.

the Nov 2028, and a little cheap vs. the Nov 2029 based on those metrics. Of the

10-Year basket Bonds, the May 2028 offers the best "value," although the line

will be the next to drop out of the basket, and may continue to underperform as

a result.

- Results due at 0000GMT/1100AEDT.