The ASX gained on Monday as miners, banks and energy companies carried the market higher, offsetting losses from buy now, pay later darlings Afterpay and Zip.
The ASX 200 has pulled back from an early surge but is still higher as investors cheer the $2.5 trillion US stimulus bill moved closer to becoming law.
Some of the nation’s top economists say serious tax reform, in addition to spending on infrastructure and childcare, are needed to build out of the recession.
Australia Central Bank to Stick With Defense of Yield Target
Bloomberg 3/1/2021
(Bloomberg)
Australia’s central bank signaled it will not shirk from its yield target and quantitative easing programs designed to hold down borrowing costs and keep a lid on the currency. Yet, the bond market is proving resistant.
Reserve Bank Governor Philip Lowe and his board are likely to focus Tuesday’s meeting on their response to a global reflation trade that’s proving a major challenge for central banks. The RBA opted against further defense of its three-year yield target Monday, instead doubling the size of its typical longer-dated debt purchases.
(Bloomberg) Australia’s 10-year sovereign yield slid by the most in a year on Monday, following a rebound in U.S. Treasuries on Friday and amid speculation that central banks will do more to support bonds.
The 10-year yield dropped as much as 23 basis points, the most since March 2020, to 1.