ACGB Mar-47 Supply Passes Smoothly Enough, Metrics Mixed

The latest round of ACGB Mar-47 supply sees the weighted average yield print comfortably through prevailing mids (0.98bp through, per Yieldbroker), although the width between the weighted average and high yields, as well as the cover ratio (comfortable but only a little above 2.00x), were probably a product of the combination of the timing of the auction (the most illiquid time of the week for global financial markets), continued uncertainty re: terminal rates of the current hiking cycles at the world’s major global central banks (including that of the RBA) and flatness of the broader curve (albeit comfortably off of cycle flats), factors we suggested may weigh on demand pre-auction. There has been little movement in the pricing of the cash bond post-auction, with the metrics ultimately pointing to smooth enough digestion of supply, even if it wasn’t overwhelmingly firm.