AUSSIE BONDS: Nov-29 Supply Goes Smoothly With More Demand

• The PBOC issued CNY520.1  bn of 7-day reverse repo at 1.4% during this morning's operations.
• Today's maturities CNY75.5 bn
• Net liquidity injection CNY444.6bn.
• The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
• The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.42%, from prior close of 1.56%.
• The China overnight interbank repo rate is at 1.45%, from the prior close of 1.30%.
• The China 7-day interbank repo rate is at 1.50%, from the prior close of 1.57%.

The latest ACGB Mar-36 auction saw adequate demand, with the weighted average yield coming in 0.41bps through prevailing mid-yields, according to Yieldbroker, continuing the trend of firm pricing at recent ACGB auctions.

• However, the cover ratio rebounded to a solid 4.45x from 2.5792x.
• As highlighted in our preview, bidding at today’s auction faced an outright yield that was 10-15bps higher than the previous auction level and about 10bps below the late February peak.
• However, the 3/10 yield curve was slightly flatter than the previous auction level and sits around 20bps flatter than its recent high.
• Global sentiment toward bonds has also deteriorated recently, providing a less than favourable backdrop for today’s issuance.
• Early post-auction trading of both XM futures and the bond line is modestly richer.

• CHINA PBOC CONDUCTS CNY520.1 BLN VIA 7-DAY REVERSE REPO WEDS