AUCTION PREVIEW: ACGB Nov-25 Supply Due

The Australian Office of Financial Management (AOFM) will today sell A$1.0bn of the 0.25% 21 November 2025 Bond, issue #TB161. The line was last sold on 14 January 2022 for A$1.0bn. The sale drew an average yield of 1.3250%, at a high yield of 1.3275% and was covered 5.2800x. There were 44 bidders, 17 of which were successful and 11 were allocated in full. Amount allotted at highest yield as percentage of amount bid at that yield was 40.5%.

• Elevated SLF borrowing of the line (over A$3.0bn at the last count) and more than ample liquidity in the domestic banking system should promote smooth takedown at today’s auction, although the impending cessation of the RBA’s outright ACGB purchases may prevent the auction from being quite as strong as it could be.
• A reminder that the line’s inclusion in the underlying basket for YM futures promotes hedgability of the line & will aid demand, as will the limited DV01 on offer.
• Results due at 0000GMT/1100AEDT.