Central Banks Fight Bond Rout With Action and Promise of More
- RBA launches unscheduled buying operation for three-year bonds
- ECB’s Schnabel says central bank can boost stimulus if needed
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Central banks from Asia to Europe escalated their efforts to calm panicking markets, pledging to buy more bonds and signaling more policy accommodation, after U.S. Treasury yields surged to the highest level in a year.
The Reserve Bank of Australia waded in with more than $2 billion of unscheduled purchases, while Korea announced buying plans for the next few months. European Central Bank Executive Board member Isabel Schnabel said more stimulus could be added if the surge in yields hurts growth.