Halister News

(Bloomberg) -- Tender of Australia’s May 2021 bonds draws a higher coverage ratio than previous sale of similar-maturity debt as benchmark yield climbs to highest since 2015.

• Friday’s auction saw a coverage ratio of 5.26, up from 5.16 at the March 3 offering of November 2020 debt
  • Both bonds are underlying securities for 3-year note futures
• Benchmark 3-year yield rises as much as 3bps to 2.13% in secondary market, highest since December 2015
• The market seems to be in frame of mind to continue to price for rate hikes in Australia, JPMorgan strategist Sally Auld writes in note Friday
  • From a fundamental perspective, pricing is unlikely to be reflective of the likely path of RBA cash rate: Auld
• Elsewhere in Asia, Bank of Japan offered to buy less 1-to-3- year notes than previous operation on March 1 while leaving unchanged amounts for other maturities

• Asia Rates at Glance
  • Japan 0.085% (0.83) -0.5bp (-0.50)
  • Australia 2.977% (3.32) +4.8bps (1.11)
  • New Zealand 3.398% (1.14) +2.3bps (0.41)
  • Singapore 2.470% (1.20) +4.0bps (0.90)
  • South Korea 2.319% (2.85) +0.1bp (-0.05)
  • China 3.420% (1.27) -1.0bp (-0.38)
  • Indonesia 7.522% (-0.85) +1.8bps (0.39)
  • Malaysia 4.203% (0.49) +0.7bp (0.13)
  • Thailand 2.835% (1.76) -0.5bp (-0.21)
  • India 6.881% (1.48) +2.0bps (0.22)
• NOTE: Table shows 10-year govt bond yields and changes on the day. Numbers in brackets are Z-scores that measure deviation from average in past three months