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Flatter On Trump News, ACGB Supply Absorbed


The risk-off posturing surrounding Trump that we have flagged elsewhere has allowed the flattening impetus to extend, YM +2.0 and XM +7.5, with the latter now comfortably through its SYCOM highs, with participants eying the Labour Day weekend. Swap spreads have widened on the move.

  • Today's ACGB 2039 supply was firm enough, with average yields pricing ~0.5bp through mids (based on BBG prices). The cover ratio was low by recent standards (~2.50x), but the tap was atypical, as we discussed ahead of the auction.
  • Local retail sales data was virtually in line with expectations, while the weekly AOFM issuance schedule returned to a more vanilla setting.
  • Bills unchanged to +2 through the reds.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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