I posted an earlier preview here: RBA monetary policy meeting Tuesday 2 March 2021 - preview
And also posted on the busy bees at the RBA, buying Australian government bonds to lower yields:
- The RBA splashed out on bond-buying today, double the usual amount. Ball now in other central bank courts.
- The RBA doubled the size of its bond-buying today, and may continue to be more active
Coming up today from the RBA, policy announcement due at 0330 GMT. Long story short is an unchanged policy, but .... says BNZ:
- The RBA's monetary policy update comes this afternoon and yesterday's QE operation leaves no doubt about its prevailing view. The rates market has been dysfunctional at times, with market participants testing the Bank's commitment to keeping the 3-year rate at 0.1% (to be consistent with its view that the cash rate is unlikely to rise in the next 3 years).
- Expect another dovish missive by the RBA, keen on keeping rates suppressed for now and keeping the AUD in check (unsuccessfully so far). There will be some interest in whether the RBA extends YCC through to the November 2024 bond, which would solidify the Bank's commitment to keep the cash rate unchanged for at least three years. Over $1b of yesterday's buying was for this bond anyway, given that the yield trades well above the adjacent April 2024 bond.
