RBA bond-buying outcome suggests more buying likely next week
By Sophia Rodrigues
Published On 27 Aug 2020 , 04:07 PMThe RBA made nearly equal purchases of the April 2023 government bond and the April 2024 but didn't manage to sufficiently drive down yield. This means there is a possibility of more bond-buying on Monday if yields continue to be higher than the RBA's 0.25% target for three-year bonds.
At the bond-buying auction today, the RBA bought A$984 million of April 2023 bond at cut-off yield of 0.2575% and weighted average yield of 0.2603%.
The RBA also bought A$1.016 billion of the April 2024 bond at cut-off yield of 0.2925% and weighted average yield of 0.2948%.