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

Iran urges a “realistic response” from the US to Iranian proposals on nuclear deal
When is the US ISM Services PMI and how could it affect EUR/USD?
Pinterest climbs on user numbers and Elliott investment even as financials disappoint
4.2 million people quit in June despite recession worries: ‘A paradox in our economy’
Markets in Quiet Mode, Awaiting US Job Data

Leave a Reply

Your email address will not be published.