RBA drops yield curve control

Lowe acknowledges messy market conditions after yields broke free late last week

Philip Lowe
Philip Lowe
Photo: Crawford Forum/Flickr

The Reserve Bank of Australia has abandoned its yield curve target, a few days after bond yields broke free and surged above the central bank’s goal.

Investors had judged – correctly – that higher rates were on the horizon. As yields on government debt climbed, the RBA chose not to intervene to defend its target of 10 basis points for debt maturing in April 2024. Two-year yields are now at 0.65%, though bonds at higher maturities have seen their yields climb less.

Policy-makers considered

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account