RBNZ steps up its weekly target for bond purchases, NZD/USD off the lows
|Amid the relentless surge in yields, the Reserve Bank of New Zealand (RBNZ) has stepped up its weekly target of bond purchases.
The kiwi central bank announced that it will buy NZD630 million of government bonds next week.
That will be up against the NZD570 million worth of bond buying conducted this week.
Earlier on, the RBNZ said that it could increase its weekly purchases if required.
Market reaction
As the central bank comes to the rescue of the bond market, NZD/USD stages a quick comeback and rises to 0.7170, at the time of writing.
The kiwi hit a four-month low of 0.7156 in the last hour, losing 0.26% so far.
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