Trial now

EUROPE SUMMARY: Mixed Rates Structures


Large 10Y Put Fly


Larger FX Option Pipeline


Preview $24B 20Y Tsy Auction Re-Open

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

The Australian Office of Financial Management (AOFM) will today sell A$150n of the 2.50% 20 September 2030 I/L Bond, issue #CAIN408. The line was last sold on 8 June 2021 for A$150mn. The sale drew an average yield of -0.6452%, at a high yield of 0.6400% and was covered 3.6067x. There were 42 bidders, 7 of which were successful and 4 were allocated in full. Amount allotted at highest yield as percentage of amount bid at that yield was 60.8%.

  • Much like U.S. breakevens, Australian BEIs are back from their recent (multi-year) wides, with questions surrounding the longer-term inflationary impetus in the wake of the recent hawkish developments at the respective central banks setting in after a solid rally from last year's tights.
  • Westpac believe "the recent narrowing in BEIs will slow from here. On a medium-term outright basis real yields remain expensive."
  • Results due at 0200BST/1100AEST.