This assessment was reached by both the RBA and financial market participants and it was reflected in market prices. In these circumstances, the Board judged that there were more costs than benefits in seeking to continue to anchor the yield on the April 2024 bond at 10 basis points. The removal of the target was associated with volatility in the bond market.
The RBA is conducting a review of the whole experience with the yield target and the results will be published later this year. In terms of the bond purchase program, the final purchases were made yesterday. All up, across the various programs, the RBA has purchased $ billion of bonds issued by the Australian Government and by the states and territories.