RBA bond-buying outcome suggests more buying likely next week

By Sophia Rodrigues

The 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%.