The Australian Office of Financial.....>

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

sell A$900mn of the 2.75% 21 November 2029 Bond, issue #TB154. The line was last

sold on 13 February 2019 for A$900mn. The sale drew an average yield of 2.1564%,

at a high yield of 2.1575% and was covered 2.9756x. There were 35 bidders, 13 of

which were successful and 5 were allocated in full. Amount allotted at highest

yield as percentage of amount bid at that yield was 86.9%.

- The line has A$19.9bn outstanding, with a modified duration of 9.22 years. The

line forms part of the deliverable basket for XMM9. The line sits at the cheaper

end of its recent range in Z-spread terms, much the same as ACGB 05/2030, but

the same cannot be said for the remaining basket constituents, ACGB 11/2028 and

ACGB 04/2029. ASW metrics paint a similar picture.

- That being said, benchmark 10-Year Australian yields (ACGB 04/2029 at present)

operate just off the fresh all time low registered in recent sessions, on the

back of worries surrounding U.S. Tsy curve inversion and the global economy, as

well as the recent run of dovish pivots from many central banks (incl. the RBA).

- Results due at 0000GMT/1100AEDT.