RBA offers to buy up to A$5 bln of government bonds in first round of QE

Ross J Burland FXStreet

Reserve Bank of Australia said it will buy up to A$5bln of government bonds in the first round of QE.

Key notes

Says offers to buy bonds with maturity between 2 years and 8 years.
Says offers to buy govt bonds maturing July 2022, April 2023, Nov 2027 and May 2028.

Meanwhile, The National Australia Bank ltd announces sweeping support package for business and personal customers.

Key notes

National Australia bank ltd - Home loan customers experiencing financial challenges will also be able to pause their repayments for up to six months.
National Australia bank ltd - NAB will cut 200bps from rate on new loans.
National Australia bank ltd - Will reduce variable rates on small business loans by 100bps, effective March 30.
NAB - Business customers experiencing financial difficulty can defer payments on range of floating & variable rate business loans for up to 6 mths.
National Australia Bank announces reductions of up to 60bps to fixed rate home loans.

AUD/USD action

since AUD/USD falls 1% in early Asia, AUD/USD has recovered and run to a fresh high of 0.5785, going from -1% to now +0.75%.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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