March 23, 2020 / 5:19 AM / 9 days ago

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

FILE PHOTO: An ibis bird perches next to the Reserve Bank of Australia headquarters in central Sydney, Australia February 6, 2018. REUTERS/Daniel Munoz/File Photo

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

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