Free Trial

Westpac note the following re: the.....>

AUSSIE BONDS
AUSSIE BONDS: Westpac note the following re: the new ACGB 1.00% Dec '30: "Our
"fair value" modelling, using the announced 1.00% coupon, puts the 10yr EFP
range between 4.6bp to 7.5bp and at a trimmed mean of 6.3bp.The AOFM have now
launched the transaction with initial price guidance of 10yr EFP + 7-10bp. We do
note that our curve modelling includes the ACGB June-2031 and May-2032, which
are currently offering less pickup per added year of duration than neighbouring
bonds, so that richens our fair value estimate. However, we think the announced
range is wide enough to compensate for this factor."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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.