RBA buys AUD500 million of 2023 Australian government bonds
|In an effort to control its yield curve, the Reserve Bank of Australia (RBA) announced Australian government bond purchases to the tune of AUD500 million on Wednesday.
The operational announcement on Wednesday marks the first bond purchases since May 4.
This comes after Governor Philip Lowe said in a statement on Tuesday, the central bank would resume its intervention as it seeks to maintain the three-year bond rate at 0.25%.
Market reaction
The above announcement was well-priced in before and therefore, the aussie dollar remains unfazed by it.
At the press time, AUD/USD hovers around 0.7180, still up 0.31% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.