FX

RBA defends bond yield target for the first time in eight months

In an unscheduled move on Friday, the Reserve Bank of Australia (RBA) intervened in the bond market operation to defend its yield target for the first time since end-February.

Key details

“The RBA offered to buy A$1 billion ($750 million) of its targeted government bond maturing in April 2024.”

“The yield on the April 2024 bond fell 5.6 basis points (bps) to 0.14%, according to Refinitiv data, leaving it still four bps higher than the central bank’s 0.1% target.”

Earlier on, the central bank Governor Phillip Lowe said that “the Reserve Bank of Australia (RBA) is closely watching a spike in inflation.”

Market reaction

Amidst the RBA’s intervention and China Evergrande news, AUD/USD staged a swift rebound to daily highs of 0.7490, before reversing slightly to 0.7477, where it now wavers. The spot is still up 0.15% on the day.

Articles You May Like

Gold rate today: Yellow metal ticks higher; silver regains Rs 61,000 mark
Base Metals: Copper under pressure, further consolidation on cards
Forexlive Americas FX news wrap: USD moves higher but quasi-holiday trading limits moves
NZD/USD Price Analysis: Bulls seek out 0.6300 while bears eye signs of distribution
US stocks close higher. Two day up streak for the major indices

Leave a Reply

Your email address will not be published. Required fields are marked *