At their last meeting, the RBA declined to extend the yield curve control provision. For practical purposes, this amounted to a tightening of policy, because it allowed interest rates to go higher for longer-term bonds. The market reacted accordingly, but relatively quickly that position unwound as covid cases rose across the country. The latest lockdowns underscore the unique position that Australia is in and the uneven impacts of covid within the country. For example, the most recent lockdowns also led to the suspension of the travel bubble with New Zealand. Over the weekend, South Australia’s Premier assured that ... (full story)