The yield on the Australian 10-year bond declines to 1.27% in the second week of September, but its highest level since mid-July, as traders digested updates from the Reserve Bank of Australia’s September meeting.
Policymakers confirmed its decision to shrink government bond purchases down to A$ 4 billion a week but said it would keep this pace until at least February, citing coronavirus-related risks.
In total, the central bank will end up buying more bonds than initially planned in July.
On the pandemic front, the states of New South Wales and Victoria are abandoning the Zero Covid strategy in favor of opening up as vaccination rates climb to more comfortable levels, contrasting with most of the country.
