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Very Strong Demand At Latest ACGB Apr-26 Auction

AUSSIE BONDS

ACGB Apr-26 supply goes very well, with the weighted average yield printing 2.75bp through prevailing mids (per Yieldbroker), while the cover ratio neared the 5.00x mark. The combination of the flatness of the curve, general worry re: the global banking sphere and questions surrounding whether the RBA has reached the end of its tightening cycle easily outweighed any headwinds from the recent outright richening. Note that the small number of successful bidders shows that some participants were willing to pay up to access the line. YM futures are unchanged post-auction, while ACGB Apr-26 is in fact marginally cheaper on net.

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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