Weighted average yield at RBA's 2023 bond-buying 0.2575%

By Sophia Rodrigues

Published On 06 Aug 2020 , 09:02 AM

The RBA bought A$500 million of 5.5% April 2023 Australian government bonds on Wednesday at a cut-off of 0.2525% and weighted average yield of 0.2575%.

It's interesting that despite flagging it would resume bond-buying one day earlier, and lot of market action following the announcement, a cut-off at the 0.25% target was not achieved, and the weighted average was 0.75bp above the target. 

While it is possible the RBA would view the outcome as "around" their 0.25% 3-year target, the possibility of more bond-buying cannot be discounted.

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