World News

Australia’s central bank buys $2.3 billion of government bonds

SYDNEY (Reuters) – The Reserve Bank of Australia (RBA) on Monday bought A$4 billion ($2.3 billion) in local government bonds as part of its quantitative easing program to keep short-term yields around the cash rate of 0.25%.

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$1.1 billion of November 2028 bonds.

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

(Reporting by Swati Pandey; Editing by Christian Schmollinger)