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ACGB May-32 Supply Not As Firm As Expected, But Smooth Enough

AUSSIE BONDS

A peculiar round of ACGB May-32 supply, which although it passed smoothly, wasn't anywhere near the most convincing auction that we have seen in recent times. The cover ratio fell to 2.50x (granted, there was a A$500mn uptick in the amount offered vs. the previous auction), which seems to represent the weakest cover ratio seen at an auction of the bond. The pricing wasn't the firmest, but still printed 0.27bp through mids (per Yieldbroker), which is comfortable enough in the grand scheme of things. No notable reaction in the bond/XM futures post-auction.

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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