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ACGB Jun-31 Auction Goes Smoothly

AUSSIE BONDS

Today’s auction demonstrated solid pricing for ACGBs, with the weighted average yield coming in 0.76bps below the prevailing mid-yields, according to Yieldbroker. However, the cover ratio was lower at 2.9929x versus 3.1833x at the previous outing.

  • Today’s results should be deemed solid given the potential negative influences on the bid. As outlined in our preview, today’s bid was confronted with a lower outright yield, a flatter curve and a more hawkish than expected RBA at Tuesday’s meeting. The line also sits in a less preferred area of the curve.
  • Post-auction, the ACGB May 2034 cash trade and XM have shown little change.

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