Australia's central bank buys A$4b of government bonds

[SYDNEY] The Reserve Bank of Australia (RBA) on Monday bought A$4 billion (S$3.36 billion) in local government bonds as part of its quantitative easing programme to keep short-term yields around the cash rate of 0.25 per cent.

It bought across maturities from A$891 million in May 2021 bonds to A$1.15 billion for December 2021 and A$850 million for April 2027. It also purchased A$1.10 billion of November 2028 bonds.

On Friday - the first day of its bond-buying programme - the RBA bought A$5 billion to ensure credit was cheap and freely available across the economy as the coronavirus impact deepens.

REUTERS