The AFR is reporting that the RBA is supporting liquidity in the banking system in Australia.
The Reserve Bank of Australia is pumping $8.8 billion into short-term commercial bank funding to ease a squeeze in global credit markets.
The emergency move follows a similar intevention by the New York Federal Reserve overnight.
The US Treasury market seized up after debt investors were spooked by US President Donald Trump closing the American border to European travellers and his broader handling of the coronavirus crisis.
Local bond market sources reported an evaporation of liquidity, heavy selling pressure, clogged dealer balance sheets and upward pressure on government bond yields in global government bond markets, including the US and Australia.
“There’s heavy selling of bank bill futures, a bit like the GFC,” a trader said.
