Australia: Government auctioned a record A$1.1 bln of 11-year bonds - BBH

Australia's government auctioned a record A$1.1 bln of 11-year bonds today, and the demand for the 2.75% coupon was strong as noted by the analysts at BBH.  

Key Quotes

“The government has been stepping up the size of the auctions in recent months.  The demand appears to have helped the Australian dollar return to the upper end of its $0.7600-$0.7700 range that has confined most of the price action this month.  The strong demand at the auctions is the good news, but the record size auctions reflect the fact that Australia's budget deficit is expected to widen this year to a little over 2% this year from 1.5% last year.  S&P has a negative outlook for Australia's AAA rating since last July.  The government will update its fiscal projections in May.”