RBA buys $2.3 bln of government bonds as part of its QE programme

Dhwani Mehta FXStreet

As a part of its quantitative easing (QE) programme announced last Thursday, the Reserve Bank of Australia bought A$4 billion ($2.3 billion) in local government bonds on Monday.

Key details

Buys A$891M Of May 2021 notes, avg yield 0.2655%

Buys A$1.15B Of Dec. 2021 notes, avg yield 0.2653%

Buys A$850M Of Apr. 2027 notes, avg yield 0.5679%

Buys A$1.11B Of Nov. 2028 notes, avg yield 0.803%

On Friday, the RBA purchased A$5 billion worth of government bonds to ensure enough liquidity in the financial system, as the country battles the economic fallout from the coronavirus outbreak.

Australia PM Morrison said earlier today that Australia has 1,609 cases of coronavirus.

AUD/USD reaction

AUD/USD is consolidating its bounce from 0.5700, now trading around 0.5750 after the bulls failed to takeout the 0.5780 resistance area amid broad risk-aversion.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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