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ACGB Jun-51 Auction Goes Smoothly With More Demand Present

AUSSIE BONDS

Expectations of sustained strong pricing at today's auction proved accurate, as the weighted average yield printed 0.67bps through prevailing mids, according to Yieldbroker. The cover ratio at 3.3500x printed around levels seen at recent longer-dated auctions.

  • As highlighted in our preview, bidding at today’s auction was likely influenced by several factors. The RBA's relatively hawkish stance at the June meeting and May’s higher-than-expected CPI were potential negatives.
  • However, improved sentiment towards longer-dated global bonds likely provided support.
  • In post-auction dealings, the ACGB Jun-51 cash trade is 0.5bps cheaper, with XM remaining largely unchanged.

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