RBA offers to buy $1b April 2024 bonds

The Reserve Bank on Friday offered to buy $1 billion of three-year government bonds in its regular market operations to restrain a recent jump in yields above its 0.10 per cent target.

The move had been expected following a rout in global markets and rising market expectations the central bank will increase its cash rate well before 2024.

The central bank’s last auction under its yield curve control occurred on February 26 when it bought $3 billion of the April 2023 to April 24 bond lines. Yields on April 2024 bonds eased a touch to 0.14 per cent, from 0.17 per cent.

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