SYDNEY: The bond market rout is starting to test the resolve of global central banks, and nowhere is that clearer than in Australia, where policymakers are struggling to defend their yield targets.
The Reserve Bank of Australia (RBA) bought A$5bil (US$4bil) of bonds yesterday, matching the record last March when it began quantitative easing. That hasn’t stopped the targeted three-year bond yield from hitting a two-month high, while a selloff that began in New Zealand has also widened to Treasuries and Japanese debt.
