A recent bias to shorter bonds means that the risk (DV01) extracted by the RBA’s buybacks has declined. Combined with the tapering of the amount, this lowers risk extracted by about 30% per week.
The RBA can push back the constraints on their Bond Purchase Program by buying beyond May’32 and buying more Semis. Doing both would create scope to ease policy by accelerating QE, if that was required.
There are three main problems with RBA QE: The RBA owns too large a share of the lines it does buy. The tenor of the bonds they buy is shortening. And Semis want to issue longer than the RBA buys to fund infrastructure.