Will RBA announce bond-buying today?

By Sophia Rodrigues

Published On 10 Jun 2020 , 10:45 AM

All eyes on the RBA at 11:15am this morning for any announcement on bond-buying given three-year government bond yield has moved away from the 0.25% target in recent days. The RBA has said any likely bond-buying would be done on Mondays, Wednesdays and Thursdays, so there is an expectation of an announcement today.

However, with the exception of March 31, the RBA has in the past done buying of semis on Wednesdays. So it will be interesting to see if they change their practice and do government bond-buying today, assuming they announce anything at all.

ANZ analysts said on Tuesday they think there is a material chance the RBA might decide to make purchases this week. "Our view is that if the RBA does buy bonds, it will be in the 3y–5y part of the curve and possibly just for ACGBs with semi-to-bond spreads narrowing last week," they wrote in a note.

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