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ACGB Apr-27 Supply Goes Very Well

AUSSIE BONDS

The stabilisation in Aussie bonds from cycle cheaps (aided by rising recession worry from the U.S. and Europe), strength in recent ACGB auctions, and the previously-flagged micro relative appeal of the line contributed to a well-received round of ACGB Apr-27 supply, with the weighted average yield printing 2.66bp through prevailing mids (per Yieldbroker), and the cover ratio coming in above 3.00x (at 3.99x, although below the six-auction average of 4.11x). Note that today’s maturity of ACGB Jul-22 and related-redistribution of cash may have also contributed to the strength of the auction, given the limited free float of some of the shorter dated lines.

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