Demand at Wednesday’s auction for seven-year Australian government bonds jumped:
bids covered the A$1 billion Nov-2033 note at over 4.0x, the strongest
seven-year bid-to-cover since November last year, the Australian Office of
Financial Management said. Investors are increasingly betting the Reserve Bank
of Australia’s tightening cycle may be ending and are buying the mid-section of
the federal curve to position for a slowdown in tightening, said Eugene, senior
rates strategist at DBS Group.
