NAB Look Into Potential Syndication Windows For ACGB Nov '32

NAB note that "the AOFM confirmed in its January funding update that syndication of a new ACGB Nov '32 would be conducted before the end of the fiscal year. Although no further guidance has been forthcoming from the AOFM on the exact timing of the new syndication, there are some possible issuance windows in the next month or so. The first is the present. Outright rates volatility has eased over the past week. The AOFM has reduced supply into the market for a few weeks. The ACGB-U.S. Tsy spread is trending tighter, but still offers some value for investors. So syndication of the new bond now may find sufficient demand. Another possible window is mid to late April. ACGB May '21 will be removed from the Bloomberg AusBond 0Y+ indices at the end of April rebalancing, driving a larger than normal index extension. In the past the AOFM has often "fed" the demand for duration extension by issuing a new line that can go into the index at the same time as maturing stocks are removed."