RBA buying concentrated in Nov 2022 govt bond
By Sophia Rodrigues
Published On 14 Apr 2020 , 04:14 PMThe RBA bought the entire A$1.5 billion it notified this morning, with 65% of the purchases concentrated in the November 2022 bond.
Four out of the five bonds were bought at weighted average yield below 0.25%. This is the first time the weighted average yield at bond-buying auction has fallen below the RBA's three-year yield target of 0.25% and also the 0.25% cash rate target.
Below is the results of the auction:
| Issuer | Coupon % |
Maturity mm/yy |
Amount purchased (face value) $m |
Weighted average yield % |
Cut-off yield % |
|---|---|---|---|---|---|
| CGS | 5.75 | 05/21 | 128 | 0.2212 | 0.2200 |
| CGS | 2.00 | 12/21 | 105 | 0.2236 | 0.2200 |
| CGS | 5.75 | 07/22 | 55 | 0.2393 | 0.2350 |
| CGS | 2.25 | 11/22 | 980 | 0.2450 | 0.2450 |
| CGS | 5.5 | 04/23 | 232 | 0.2625 | 0.2625 |