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MNI US Macro Weekly: Politics To The Fore
Firm Pricing For ACGB May-28 Supply But Less Demand Seen
The latest round of ACGB May-28 supply sees the weighted average yield print 1.43bp through prevailing mids (per Yieldbroker), extending the recent trend of firm pricing at ACGB auctions.
- An expectation of continued firm pricing at auctions proved correct, but the cover ratio at 3.6071x was materially weaker than the 5.7000x seen at the February 10 auction.
- Uncertainty regarding the near-term outlook for RBA policy and the flatness of the 3/5 cash curve look to have capped overall demand. However, the recent outright cheapening in the line has provided some sort of offset for those concerns.
- There has been no notable movement in YM or XM futures post-supply, while the May-28 bond is 1bp richer versus pre-auction levels in cash trade.
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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.