# Virus outbreak tests market conviction on RBA decision

> The COVID-19 outbreak in Sydney is testing bond market expectations that the Reserve Bank will extend its yield curve control to the November 2024 bond at its meeting next week. A decision not to extend the target would pave the way for rate hikes as soon as late 2022. The article is a market preview of Australian monetary policy.

- Date: 2021-06-29 · published 2021-06-29T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/46852-virus-outbreak-tests-market-conviction-on-rba-decision
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

A shift in Australian yield curve policy would move the Australian dollar and bond yields, which affects Australian export pricing. Grain and feed prices are not directly affected.

## Sources

- afr.com: https://www.afr.com/markets/debt-markets/virus-outbreak-tests-market-conviction-on-rba-decision-20210629-p5858z

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.