AUCTION PREVIEW: ACGB Apr-25 Supply Due

The Australian Office of Financial Management (AOFM) will today sell A$1.0bn of the 3.25% 21 April 2025 Bond, issue #TB139. The line was last sold on 21 January 2022 for A$1.5bn. The sale drew an average yield of 1.3298%, at a high yield of 1.3300% and was covered 2.9433x. There were 45 bidders, 9 of which were successful and 1 were allocated in full. Amount allotted at highest yield as percentage of amount bid at that yield was 77.8%.

• The most recent rounds of ACGB supply have generally resulted in smooth enough passage, via comfortable pricing through mids and solid (although unextraordinary) cover ratios. The global central bank repricing observed in markets, recent bond market sell off, increased inflation worry and the RBA’s cessation of bond purchases is seemingly behind the moderation in outright demand.
• RBA SLF borrowing (~A$3bn at the last count) of this line should facilitate a slightly firmer auction, with the recent pullback from extremes in yield terms and a slight moderation in RBA pricing in recent days also helping on that front.
• Results due at 0000GMT/1100AEDT.