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ACGB Nov-32 Passes Smoothly, Not Strongly

AUSSIE BONDS

The latest round of ACGB Nov-32 supply sees smooth enough passage, with the weighted average yield pricing 0.53bp through prevailing mids (per Yieldbroker), while the cover ratio comfortably topped 2.50x. Still, the auction was by no means strong, with the headwinds that we flagged pre-auction (uncertainty re: terminal rates at major global central banks, flatness of the curve and richeness of Aussie 10s vs. U.S. 10s) partially offsetting the enticement provided by outright yield levels and some sense of micro-RV on the curve. No immediate reaction in XM futures and ACGB Nov-32 post-supply, with some cheapening already in play pre-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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