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ACGB Nov-31 Auction Prices Well, Cover A Little Low

AUSSIE BONDS

Market volatility continues to weigh on overall demand at ACGB auctions, with the cover ratio at the latest round of ACGB Nov-31 supply comfortably shy of the 3.00x level, even with the added security blanket of hedgability via XM futures evident. Still, pricing remained firm, with the weighted average yield 0.71bp through prevailing mids (per Yieldbroker). There was no immediate post-auction reaction in ACGB Nov-31, nor in XM futures, with the auction passing smoothly in the grander scheme of things, as the firm pricing offset a slightly disappointing cover ratio.

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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