AUSSIE BONDS: Nov-29 Supply Goes Smoothly With Very Strong Demand
May-09 01:21
The latest ACGB Nov-29 auction was well-received, with pricing coming in comfortably through mids — the weighted average yield was 1.66bps below prevailing mid-yields, according to Yieldbroker.
- The cover ratio surged to a notably strong 5.4143x, up from 4.1286x at the previous auction, while the number of successful bidders fell to just three — highlighting highly concentrated demand.
- As highlighted in the MNI Auction Preview, the auction cleared smoothly despite an outright yield approximately 30bps lower than the previous auction and roughly 75bps below the November 2024 peak of 4.32%.
- Moreover, the 3/10 yield curve was around 20bps steeper than the previous auction but sat around 20bps below its recent high.
- In post-auction trading, the Nov-29 line has richened by around 1bp.
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CNY: CNY Fix Lower than Estimates.
Apr-09 01:20
The USD/CNY fix printed at 7.2066, versus a BBG market consensus of 7.3387.
- The USD/CNY fix was little higher versus yesterday’s fix of 7.2038. The fixing error was -1321pips today
- USD/CNH has gained +0.516% at 7.3867 in morning’s trading.
CHINA SETS YUAN CENTRAL PARITY AT 7.2066 WEDS VS 7.2038
Apr-09 01:16
- CHINA SETS YUAN CENTRAL PARITY AT 7.2066 WEDS VS 7.2038
AUSSIE BONDS: Smoothly Absorbed With Solid Demand Metrics
Apr-09 01:13
The latest round of ACGB Nov-28 supply sees the weighted average yield print 0.74bps through prevailing mids (per Yieldbroker), extending the recent trend of firm pricing at ACGB auctions.
- Moreover, the cover ratio increased to 4.5550x from 4.1214x.
- The significantly lower outright yield did not appear to dampen demand.
- Bidding interest was likely underpinned by rising market expectations for RBA easing in 2025, the bond’s inclusion in the YM futures basket, and renewed haven demand.
- Following the auction, YM showed little reaction, with the Nov-28 bond holding steady around pre-auction levels in cash trading.
