RBA announces identical bond-buying for second day

By Sophia Rodrigues

Published On 03 Apr 2020 , 11:51 AM

For the first time since it began bond-buying in the secondary market on March 20, the RBA has announced same purchases for the second consecutive day.

The RBA is buying A$2.0 billion of bonds in the April 2024 to November 2027 maturity. On Thursday, the auction resulted in a rise in yield versus the day before, and the buying was concentrated in the 2024-25 bonds. The purchase today may be aimed at driving yields lower and flattening the 3-5yr curve which it failed to achieve yesterday.

The bonds falling within this maturity are:
-2.75% April 2024
-3.25% April 2025
-4.25% April 2026
-4.75% April 2027
-2.75% November 2027
 

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