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ACGB Apr-25 Supply Goes Well

AUSSIE BONDS

A well-received round of ACGB Apr-25 supply sees the weighted average yield print 1.68bp through prevailing mids (per Yieldbroker), with the cover ratio printing at a more than comfortable 3.85x.

  • We expected firm pricing, with the cover a little higher than we would have expected pre-auction.
  • Demand for the line was evident ahead of the auction, given the amount borrowed via the RBA’s SLF (as we flagged in our preview), with the outright yield level on offer, flatness of the wider curve and step down in RBA tightening pace outweighing headwinds from ongoing market vol. and uncertainty re the RBA’s terminal cash rate.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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