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Firm Pricing For ACGB Sep-26 Supply But Less Demand

AUSSIE BONDS

The latest round of ACGB Sep-26 supply sees the weighted average yield print 1.37bps through prevailing mids (per Yieldbroker), extending the recent trend of firm pricing at ACGB auctions.

  • While our anticipation of sustained strong pricing at auctions held true, it's noteworthy that the cover ratio saw a noticeable decline to 3.7625x, down from the previous 4.0312x. It's essential to recognise, however, that the outright yield is 30-35bps lower than the level in October 2023.
  • Optimism regarding the RBA's policy outlook, coupled with the bond's inclusion in the YM basket, has likely bolstered demand at today’s auction. However, the looming release of Q1 CPI figures on Wednesday probably exerted a counterbalancing influence.
  • Following the supply, there hasn’t been any noticeable movement in YM futures or the bond line itself.
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The latest round of ACGB Sep-26 supply sees the weighted average yield print 1.37bps through prevailing mids (per Yieldbroker), extending the recent trend of firm pricing at ACGB auctions.

  • While our anticipation of sustained strong pricing at auctions held true, it's noteworthy that the cover ratio saw a noticeable decline to 3.7625x, down from the previous 4.0312x. It's essential to recognise, however, that the outright yield is 30-35bps lower than the level in October 2023.
  • Optimism regarding the RBA's policy outlook, coupled with the bond's inclusion in the YM basket, has likely bolstered demand at today’s auction. However, the looming release of Q1 CPI figures on Wednesday probably exerted a counterbalancing influence.
  • Following the supply, there hasn’t been any noticeable movement in YM futures or the bond line itself.