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Strong Aussie bond auction, cover......>

AUSSIE BONDS
AUSSIE BONDS: Strong Aussie bond auction, cover comes in at 8.54 from 5.40 last
time out.
- Strong cover has surprised many as conditions for the auction were fairly
similar to the previous auction. 3-Year AUD basis swaps steady at 14-15bp for
the past month, yield concessoin was a small 0.5bp.
- The 2.00% Dec 2021 bond will remain part of the 3-Year basket when the
contract rolls so could see some increased demand after sales of older issues.

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