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'Playing a starring role': Why the world's markets are keeping a close eye on the RBA


‘Playing a starring role’: Why the world’s markets are keeping a close eye on the RBA
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By Ruth Carson
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Bond traders searching for a chink in the armour of central banks are starting to look to Australia, where a likely showdown over yield-curve control is set to test the power of policy makers to contain the next wave of reflation bets.
The global trading day for bonds begins in earnest in Sydney each morning, giving developments in Australia’s $US600 billion ($787 billion) sovereign debt market an outsized impact on sentiment. It was the scene of a dramatic “flash crash” last year when the yield program was announced, illustrating the potential for turmoil. ....

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