Free Trial
ASIA

Coming up in the Asia-Pac session on Monday:

MNI

Coming up in the Asia-Pac session on Monday:

USDCAD TECHS

Impulsive Rally Extends

US TSYS

Late Eurodollar/SOFR/Treasury Option Roundup

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Mediocre ACGB May-32 Supply; Cover Declines

AUSSIE BONDS

The latest round of ACGB May-32 supply went well enough on the pricing side, with the weighted average yield printing 0.72bp through prevailing mids (per Yieldbroker). However, the cover ratio declined to 2.65x from the 3.00x observed at the previous auction, printing below the six-auction average of 2.83x in the process.

  • As flagged in our preview, the lack of relative value amidst the flatness of the ACGB curve as well as the structurally rich status of the line (owing to its benchmark 10-Year status) likely contributed to the softer cover ratio observed at today’s auction, with the continued sidelining of international investors on uncertainty re: the RBA, as well as the proximity to upcoming Q2 WPI data and the RBNZ’s monetary policy decision providing additional headwinds for demand.
128 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The latest round of ACGB May-32 supply went well enough on the pricing side, with the weighted average yield printing 0.72bp through prevailing mids (per Yieldbroker). However, the cover ratio declined to 2.65x from the 3.00x observed at the previous auction, printing below the six-auction average of 2.83x in the process.

  • As flagged in our preview, the lack of relative value amidst the flatness of the ACGB curve as well as the structurally rich status of the line (owing to its benchmark 10-Year status) likely contributed to the softer cover ratio observed at today’s auction, with the continued sidelining of international investors on uncertainty re: the RBA, as well as the proximity to upcoming Q2 WPI data and the RBNZ’s monetary policy decision providing additional headwinds for demand.