Free Trial

Smooth Digestion Of Jun-35 Supply, Weaker Demand Present

AUSSIE BONDS

The latest round of ACGB Jun-35 supply sees the weighted average yield print 1.02bps through prevailing mids (per Yieldbroker), extending the recent trend of firm pricing at ACGB auctions.

  • However, the cover ratio slipped slightly from 3.3438x at the previous auction to 3.2062x.
  • An expectation of continued firm pricing at auctions proved correct, with cycle highs for the outright yield and the 3/10 curve seemingly supporting demand at today’s auction.
  • The possible negative factors flagged in our auction preview, namely the prevailing bearish sentiment towards longer-dated global bonds, the line not being part of the XM basket and the potential necessity to increase the line "up to size", do not appear to have materially constrained the overall strength of bidding.
  • There has been no notable movement in XM futures post-supply, while the bond line was slightly cheaper versus pre-auction levels in cash trade.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.