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ACGB Apr-2027 Supply Prices Very Firmly; Cover Falls

AUSSIE BONDS

The latest round of ACGB Apr-2027 supply went smoothly, with the weighted average yield printing 2.01bp through prevailing mids (per Yieldbroker estimates). The cover ratio however moderated to 3.14x, below the six-auction average at 4.13x, but doesn’t point to anything in the way of worrying demand at that level.

  • As mentioned in our preview, the easily digestible DV01 on offer (A$321K) and the fact that the line is borrowed via the RBA’s SLF likely aided the firm pricing.

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