MALAYSIA: PMIs Continue to Disappoint

The Australian Office of Financial Management (AOFM) will today sell A$1200mn of the 2.75% 21 June 2035 bond, issue #TB145. The line was last sold on 2 May 2025 for A$900mn. Bidding is likely to be shaped by several key factors: 

• The current yield for this bond is approximately 10bps below the level of the previous auction and 60bps below the high recorded in early November 2024.
• The 3/10 yield curve is around the same level as the previous auction but sits 20bps below its recent high.
• Notably, investor sentiment toward longer-dated global bonds has improved over June.
• The inclusion of the Jun-35 line in the XM basket may also lend support to demand.
• Results are due at 0200 BST / 1100 AEST.

The Australian Office of Financial Management (AOFM) will today sell A$1200mn of the 2.75% 21 June 2035 bond, issue #TB145. The line was last sold on 2 May 2025 for A$900mn. 

• The sale drew an average yield of 4.2413%, at a high yield of 4.2425% and was covered 3.4444x. There were 34 bidders, 13 of which were successful and 6 were allocated in full. The amount allotted at the highest yield as a percentage of the bid at that yield was 94.2%.
• This week's ACGB supply is above the top end of the recent average weekly issuance of $1500-2000mn, with A$1000mn of the 2.25% 21 May 2028 bond on Friday.
• During the first half of 2025-26, the AOFM plans to: issue a new October 2036 Treasury Bond (by syndication and subject to market conditions); conduct 2 Treasury Bond tenders most weeks; hold 1-2 Treasury Indexed Bond tenders each month. 
• Issuance of Treasury Bonds (including Green Treasury Bonds) in 2025-26 is expected to be around $150 billion. Issuance of Treasury Indexed Bonds in 2025-26 is expected to be between $2 billion and $3 billion. 
• Results are due at 0200 BST / 1100 AEST.