To maintain this target, the RBA has conducted auctions to buy the 3-year target bond when the yield has moved above the target in a material and sustained way. Such purchases have been necessary on relatively few occasions.
Much of the time, the market has had sufficient confidence in the sustainability of the target that the yield has been anchored close to the target, which was 25 basis points from March to November 2020, and then 10 basis points (Graph 5).