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Apr-27 Supply Goes Well

AUSSIE BONDS

The latest round of ACGB Apr-27 supply comes as expected pricing comfortably through mids (weighted average yield was 0.89bps through prevailing mids, per Yieldbroker).

  • The cover ratio was also a robust 3.3929x, although lower than last auction’s 3.8375x.
  • As the MNI Auction Preview highlighted, the outright yield and the AU3/10 yield curve were around the same levels as the 10 April auction.
  • The line’s inclusion in the YM basket and improved sentiment towards global bonds likely proved supportive. The RBA’s relatively hawkish stance at this week’s policy meeting didn’t appear to deter today’s bid.
  • YM futures and the Apr-27 line are little changed in post-auction trading.

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