September 28, 2022 01:08 GMT
ACGB Nov-33 supply passes smoothly enough, with the weighted average yield printing 0.77bp through prevailing mids with a cover ratio comfortably above 2.50x.
- The recent outright cheapening and steepening of 3-/10-Year curve away from cycle flats, coupled with micro-RV appeal, likely combined to facilitate smooth digestion (we flagged these matters pre-auction).
- Still, ongoing market vol., worry re: further cheapening and the likely continued hiatus of most international investors probably capped the cover ratio.
- XM futures and cash ACGB Nov-33 are unchanged post auction.