The bond market has just notched a win in its tussle with the central bank of the land Down Under. As inflationary expectations intensify globally, that could be a preview of things to come for many other central banks world-wide.
The Reserve Bank of Australia said Tuesday that it has scrapped its “yield curve control” policy, which aimed to peg 2024 government bond yields at 0.1%. The policy was introduced last March at the height of the initial spread of Covid-19 internationally and has been tweaked a few times since.