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Nov-33 Supply Absorbed With Strong Demand Metrics

AUSSIE BONDS

The latest round of ACGB Nov-33 supply sees the weighted average yield print 0.39bp through prevailing mids (per Yieldbroker), extending the recent trend of firm pricing at ACGB auctions.

  • The cover ratio moved comfortably above 4.0x to 4.2600x. This compares with 2.6562x at the mid-April offering.
  • As anticipated in the auction preview, the recent positive shift in sentiment towards longer-dated global bonds and a less hawkish view regarding the RBA policy outlook have assisted the bid at today’s auction. The inclusion of the bond in the XM basket was also likely to have been a positive factor.
  • Following the auction, there has been minimal movement observed in XM futures or the bond itself compared to levels seen before the auction.

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