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 2028 bond, issue #TB152.

- The line was last sold on October 08 2018 for A$500mn. The sale drew an

average yield of 2.7698%, a high yield of 2.7725% and was covered 4.9440x. There

were 32 bidders, 17 of which were successful and 9 were allocated in full.

- The line has $24.0bn outstanding with a modified duration of 8.63 years.

- The line forms part of the underlying basket for XMZ8.

- The line's yield has operated in a ~19bp range in the time since the most

recent auction, last sitting a little shy of the top of that range at 2.7427%,

with U.S. Tsys largely dictating the recent moves in AU yields.

- The line looks a little expensive vs the nearby May 2028 in ASW & Z-spread

terms, although the shorter dated line will be the next to drop out of the

futures basket, so that makes sense.

- Results due at 0000GMT/1100AEDT.