MNI BOK WATCH: More Evidence Needed To Cut Rates, Says Rhee

MNI: PBOC Conducts CNY2 Bln Via OMO Thurs; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

MNI: PBOC Sets Yuan Parity Lower At 7.1339 Thurs; -1.06% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1339 THURS VS 7.1342

MNI BRIEF: Bank of Korea Keeps Policy Rate At 3.50%

CPI Details Show Disinflation Tapering Off for High-Rate Items (2/2)

CPI Details Show Disinflation Tapering Off for High-Rate Items (1/2)

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

AUCTION PREVIEW: ACGB Nov-28 Supply Due

AUSSIE BONDS
BulletMarketsFixed Income BulletsHomepage

The Australian Office of Financial Management (AOFM) will today sell A$900mn of the 2.75% 21 November 2028. The line was last sold on 7 February 2024 for A$800mn. The sale drew an average yield of 3.6847%, at a high yield of 3.6875% and was covered 3.3687x. There were 36 bidders, 15 of which were successful and 9 were allocated in full.

  • The previous offering of the Nov-28 line showed strong demand, with the cover ratio increasing and the weighted average yield printing 1.53bps through prevailing mids.
  • For today’s auction, the Nov-28 bond's outright yield is around the middle of its 12-month trading range, approximately 30bps higher than at the February auction but still about 50bps lower than its early November peak.
  • The 3/5 cash curve is also near the middle of its 12-month range and slightly flatter than in February.
  • Bidding at today’s auction is also likely to be influenced by other factors. First, the Nov-28 is not included in the YM basket, placing it in the less preferred section of the curve. Secondly, market sentiment regarding the RBA’s policy outlook is currently far less optimistic than it was in February, with year-end cash rate expectations about 50bps higher now than they were then.
  • Overall, another round of well-received supply is expected, but possibly with a less aggressive bid.
  • Results are due today at 0200 BST / 1100 AEST.
229 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The Australian Office of Financial Management (AOFM) will today sell A$900mn of the 2.75% 21 November 2028. The line was last sold on 7 February 2024 for A$800mn. The sale drew an average yield of 3.6847%, at a high yield of 3.6875% and was covered 3.3687x. There were 36 bidders, 15 of which were successful and 9 were allocated in full.

  • The previous offering of the Nov-28 line showed strong demand, with the cover ratio increasing and the weighted average yield printing 1.53bps through prevailing mids.
  • For today’s auction, the Nov-28 bond's outright yield is around the middle of its 12-month trading range, approximately 30bps higher than at the February auction but still about 50bps lower than its early November peak.
  • The 3/5 cash curve is also near the middle of its 12-month range and slightly flatter than in February.
  • Bidding at today’s auction is also likely to be influenced by other factors. First, the Nov-28 is not included in the YM basket, placing it in the less preferred section of the curve. Secondly, market sentiment regarding the RBA’s policy outlook is currently far less optimistic than it was in February, with year-end cash rate expectations about 50bps higher now than they were then.
  • Overall, another round of well-received supply is expected, but possibly with a less aggressive bid.
  • Results are due today at 0200 BST / 1100 AEST.