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ACGB Dec-35 Supply Digested With A Solid Cover Ratio

AUSSIE BONDS

Expectations of sustained strong pricing at auctions proved accurate, with the latest round of ACGB Dec-35 supply seeing the weighted average yield print 0.15bp through prevailing mids (per Yieldbroker).

  • Additionally, the lower outright yield did not appear to hamper the overall strength of bidding today, with the cover ratio at a solid 3.6083x. For comparison, the Dec-34 line saw a cover ratio of 2.3125x in late August.
  • The ACGB Dec-35 cash line and the XM futures contract are slightly weaker in post-auction dealings.

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