Australia sells AUD 1bln 4.25% March 2036 bonds, b/c 4.73, avg. yield 4.9923%

A routine AOFM syndicated-free auction of the 2036 line, with the headline read resting on the bid-to-cover rather than the size, which is standard for the weekly tap. A cover of 4.73 is on the firm end of what these auctions typically print and, in past episodes of this kind, strong covers have tended to be received as confirmation that the duration bid is intact rather than as a curve-moving event in itself. The average yield only becomes informative against the prevailing mid at the time of pricing and any tail to the when-issued level, neither of which the headline carries, so concession and stop-through detail will be the follow-on worth noting in the full results. Long-end Australian supply has historically traded as a function of the global duration backdrop and the RBA path rather than auction mechanics, with strong demand at the tap rarely altering the 3s10s or 10s30s structure on its own. Watch the secondary performance of the line into the close and whether subsequent taps of the same bond hold similar cover, as persistent strength at auctions of this maturity has tended to flag real-money duration demand rather than dealer warehousing.