RBA buying concentrated in Nov 2022 govt bond

By Sophia Rodrigues

Published On 14 Apr 2020 , 04:14 PM

The 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

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