RBA scraps yield target, 2024 rates guidance; ASX 200 closes down 0.6%

The Reserve Bank has abandoned its target of 10 basis points for the April 2024 Australian Government bond and has also ditched its 2024 rates guidance. Shares closed 0.6% weaker after earlier hitting a two-week low.

Stocks turn negative on the ASX despite strong finish on Wall Street. Picture: David Swift/NCA NewsWire

Welcome to the Trading Day blog for Tuesday, November 2. The RBA has abandoned its bond yield target and has also ditched its 2024 rates guidance, while the ASX 200 closed the session down 0.6%, with financials and miners hard hit.

The RBA has abandoned its bond yield target and scrapped its 2024 rates guidance. It also maintained the cash rate target at 10 basis points and said it would continue to purchase government securities at the rate of $4bn a week until at least mid February 2022.

The ASX 200 closed down 0.6% amid light trading volume due to the Melbourne Cup.

Goodman Group shares have pushed higher following a profit upgrade, while IAG has dived it lowered its FY22 insurance margin guidance and Westpac has extended its slump on broker downgrades.

Originally published as RBA scraps yield target, 2024 rates guidance; ASX 200 closes down 0.6%