Supply Absorbed, Curve Holds Flatter

Comfortable absorption of the A$1.0bn ACGB May '32 supply there, with the average yield pricing 0.54bp through prevailing mids at the time of supply (per Yielbroker pricing), although the cover was softer than prev. The latter point isn't a great worry, but one to track in future auctions covering this zone of the curve considering the A$200mn decrease in the amount of paper on offer at this auction vs. the prev auction. Nothing doing for futures in the wake of the auction, YM +0.5, XM +4.0. Elsewhere, the Melbourne COVID cluster continues to see incremental increases in confirmed cases, although there has been no market reaction to the development in recent days, given Australia's track record in dealing with the virus.