RBA buying total A$3.5B under 3-yr target, QE

By Sophia Rodrigues

Published On 09 Nov 2020 , 11:33 AM

The RBA is buying A$3.5 billion of government bonds today, with A$1.5 billion as part of its 3-year yield target, and A$2.0 billion under the Quantitative Easing program.

The RBA is buying A$1.5 billion of April 2024 government bonds and A$2.0 billion of November 2024 to May 2028 government bonds (excluding April 2027 bonds).

The bonds within that maturity include November 2024, April 2025, November 2025, April 2026, September 2026, November 2027 and May 2028.

The RBA announced last week it will buy A$100 billion of 5-10-year bonds over the next six months.The RBA plans to purchase around A$5 billion of bonds via multi-price auction every week . The initial auctions would be comprise of around A$2 billion of AGS every Monday and Thursday, and around A$1 billion of Semis on Wednesdays.

The RBA said it will closely monitor the impact of purchases on market functioning and will adjust the auctions if necessary, including their size, composition and timing.

 

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