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ACGB Nov-33 Supply Goes Well

AUSSIE BONDS

The latest round of ACGB Nov-33 supply went smoothly, with the weighted average yield printing 0.82bp through prevailing mids (per Yieldbroker), while the cover ratio improved to 2.75x vs. 2.25x seen at the previous auction, aided by the downsizing of the amount on offer.

  • The mix of the yield on offer and ACGBs operating off of cycle cheaps was sufficient to underpin demand at today’s auction, overcoming headwinds from impending event risk (i.e the upcoming Jackson Hole Symposium), even with international investors likely remaining sidelined owing to ongoing market volatility and uncertainty re: the degree of tightening that will be implemented by the RBA during the current cycle.

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