AUCTION PREVIEW: ACGB Nov '24 Rounds OF This Week's Supply

The Australian Office of Financial Management (AOFM) will today sell A$2.0bn of the 0.25% 21 November 2024 Bond, issue #TB159. The line was last sold on 3 July 2020 for A$2.0bn. The sale drew an average yield of 0.3654%, at a high yield of 0.3675% and was covered 4.4875x. There were 46 bidders, 18 of which were successful and 8 were allocated in full. Amount allotted at highest yield as percentage of amount bid at that yield was 16.8%.

• Yields hover just off outright richest levels of the bond's very short life.
• The line hasn't been included in the RBA purchases as of yet, and is perhaps a little new for inclusion in the scheme, at least from a market functioning perspective, so we shouldn't expect much support from that front in the coming weeks.
• Swaps and ASW look rich vs. the line, but the ample liquidity backdrop means that very few strategists are looking for anything in the way of a meaningful reversal in the immediate future.
• Results due at 0200BST/1100AEST.