RBA buying longer bills

The Reserve Bank reported a system cash deficit of $3.6 billion yesterday, related to withdrawals from banks to make tax payments.

In response, the RBA announced in its dealing intentions that it would repurchase securities with terms of between 269 and 364 days.

On Friday the bank set similar terms for RMBS repurchase agreements. It was the longest term the bank has set for a repo deal.

When setting terms yesterday the bank did not specify that they were for RMBS only.

As a result it purchased $2.47 billion of long dated ADI issued securities (bills), as well as $780 million of RMBS and $220 million of government securities.