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Rangebound, ACGB '31 Auction Well Received, RBA Skips Purchases

AUSSIE BONDS

YM & XM sit ~1.0 tick firmer vs. settlement after holding a narrow range during Sydney hours, with the 5-15 Year zone of the cash curve outperforming.

  • The latest round of ACGB '31 supply was well received with the cover ratio nearing 5.0x and average yield stopping through prevailing mids by ~0.4bp. A lack of relative recent supply of the line and a limited round of recent issuance from the AOFM owing to the futures roll likely supported demand.
  • Elsewhere, the RBA refrained from purchasing ACGBs when the latest window opened earlier today.
  • Bills sit unchanged through the reds.
  • The local labour market report headlines the Australian docket tomorrow.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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