RBC Like Buying The New ACGB Jun '51 Vs. 10-Year Futures

RBC note that "the AOFM launched its new '51 curve extension with an
EFP+98-105bp, later taken in to EFP+98-102bp. Our fair value measures
point towards a 92-98bp band. We recommend buying the new bond at
any level within the revised launch range, including down to EFP+98bp.
We expect long-end ACGBs to flatten further post-deal, and we would not
be surprised to see the new bond trading down to EFP+94 -95bp a week
or two after pricing. We would prefer to hold this bond as an AU 10-30s
trade, so we will be adding the bond as an EFP trade vs. 10y futures.
Curve extensions are not an exact science, but we believe that the launch
range makes the new Jun-51 look very attractive. The existing 10-30s
curve is still relatively steep by historical standards & also considerably
steeper than most offshore equivalents. Some premium is justified thanks
to a lack of RBA long end purchases, which are a feature in offshore
jurisdictions, but overall this looks like a good set-up for investors."