A target for the yield on three-year Australian Government bonds of around 25 basis points. The Reserve Bank commenced a program of buying government bonds to achieve that target and also to address the dysfunction in the market for both Australian Government bonds and the bonds of the state governments (semis). 3.
The Reserve Bank's daily market operations were expanded in size and in maturity in response to the large increase in demand for liquidity from the banking system. 4. A Term Funding Facility (TFF) for the banking system to provide three-year funding at a rate of 25 basis points. This was complemented by the Australian Office of Financial Management's (AOFM's) program to support non-bank lenders.