The Australian Office of Financial.....>

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

sell A$100mn of the 0.75% 21 Nov 2027 I/L Bond, issue #CAIN414.

- The line was last sold on 27 November for A$150mn. The sale drew an average

yield of 0.8033%, a high yield of 0.8150% and was covered 3.4533x. There were 41

bidders, 18 of which were successful and 13 were allocated in full. Amount

allotted at highest accepted yield as percentage of amount bid at that yield was

80.8%.

- The line has A$4.2bn outstanding with a modified duration of 8.42 years.

- Australian 10-Year breakevens have been pressured since mid-November on the

back of market volatility and a chorus of cautious central bank rhetoric from

across the globe, alongside fears over the health of the global economy. The RBA

joined the party in the wake of its latest MonPol decision, as Governor Lowe

revealed a more balanced outlook for MonPol. The aforementioned factors have

outweighed a recovery in crude prices during the early weeks of 2019, with

demand for inflation protection likely limited in the immediate term.

- Results due at 0000GMT/1100AEDT.