Not The Strongest Round Of ACGB Supply, But Still Solid Enough
The latest ACGB Nov-33 auction wasn’t as well received as many expected, with the slightly rich micro-RV optics probably limiting bids. That meant that the weighted average yield ‘only’ printed 0.35bp through prevailing mids, while the cover ratio barely topped 2.10x. Still, those metrics aren’t weak by any stretch of the imagination, just a little softer than the incredibly strong norm that we have become accustomed to in recent times. Cash trade sees incremental cheapening of the line post-auction, with XM futures softer at the margin.