Sydney / Singapore – The Reserve Bank of Australia (RBA) announced that it will begin purchasing AUD denominated bonds of approximate maturities of 5-10yrs as it extends its QE program for a further 6 months. Eligible securities will include those issued by the Australian Government (AGS) and those issued by the State and Territory Central Borrowing Authorities (Semis). This will be conducted in the secondary market under the $100 billion bond purchase program set out in the Governor’s statement of 3rd November 2020 (rba-purchases-of-government-securities-2020-11).

Yieldbroker continues to be the electronic platform used to support the RBA’s trading activity with this $100 billion bond purchase program being in addition to the quantitative easing measures announced by the RBA on 19th March 2020 (www.rba.gov.au/media-releases/2020/mr-20-08).

To date the RBA has purchased over $68 billion Australian Government and Semi-Government bonds via the Yieldbroker platform, as it continues to provide liquidity and support to the domestic financial markets.

Overall activity on the Yieldbroker platform has increased, sharply rising by 54% from Q4 2019 to Q3 2020. This reflects both greater turnover from existing clients and increased interest from offshore investors, who are keen to access the unrivalled liquidity and transparency into AUD bond markets that Yieldbroker offers.

“During these continued challenging times, Yieldbroker has been able to demonstrate the necessary rigorous level of responsiveness and delivery in support of the scale of the RBA’s quantitative easing programs. We are pleased to see increased activity across the Yieldbroker platform in support of the electronic trading in Australian Fixed Income, as well as growing offshore participant levels. It is our continued commitment to provide the digital infrastructure and technological expertise to support the efficient execution of issuance and buy back of bonds from the official sector” says Anthony Robson, CEO of Yieldbroker.

This follows the 12th May 2020 announcement by the Reserve Bank of New Zealand (RBNZ), in selecting the Yieldbroker platform to facilitate the auction process for undertaking Large Scale Asset Purchases (LSAP) (www.rbnz.govt.nz/reserve-bank-to-use-yieldbroker-debts-for-lsap-auctions). To date the RBNZ have purchased $25 billion across NZGB and NZ LGFA.

For further information on Yieldbroker connectivity for trading or access to Yieldbroker market data and trading analytics please contact BusinessDevGroup@yieldbroker.com.