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ACGB Jun-51 Supply Goes Smoothly

AUSSIE BONDS

The latest round of ACGB Jun-51 supply goes smoothly enough, with the cover ratio holding above 2.00x and the weighted average yield comfortably through prevailing mids, to the tune of 1.86bp, per Yieldbroker. Note that the high yield was only 0.24bp above the weighted average yield, perhaps revealing some domestic demand for yield in the wake of the latest sell off, given the previously outlined worry of international investors re: market vol. No notable reaction in XM futures in the wake of the auction, while cash trade sees the line deal essentially unchanged vs. pre-auction levels in yield terms.

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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