To recap: On Friday the AOFM has.......>

AUSSIE BONDS: To recap: On Friday the AOFM has announced a syndicated tap of the

ACGB 3.25% June 2039s. ANZ, CBA and NAB are the joint lead managers.

- ANZ note that "the deal is to come to market in the week of 14 May, with the

deal likely to be launched on Monday or Tuesday. The AOFM typically provides a

range for pricing as spread to 10-Year futures (EFP)."

- ANZ also point out that "the AOFM has indicated a "modest size" increase to

this bond, which currently has AUD6.3bn outstanding. There has only been one tap

of this bond since initial syndication, with AUD2.3bn on 10 July 2017. We expect

modest size to be between AUD2-3bn for this syndicated tap. We estimate fair

value for this bond to be 36.25bp over 10-Year futures. This would place the

bond 6.5bps above the ACGB 3.75% April 2037" - ANZ do not expect "a significant

concession to be priced into the market given recent demand for the long end,

which has seen occasioned solid bid/cover ratios."