Australia's central bank commits to keep 3-year yields low amid bond rout

Australia's central bank on Tuesday affirmed its pledge to keep interest rates at historic lows as policymakers battle to stop surging bond yields disrupting the country's surprisingly strong economic recovery.

Concluding its March board meeting, the Reserve Bank of Australia (RBA) kept rates at 0.1 per cent and committed to maintaining its "highly supportive monetary conditions" until its employment and inflation goals are met.

Global bond markets have sold off heavily in recent days on speculation the massive monetary stimulus will soon end as economies emerge from the pandemic-induced recession.

On Tuesday, Governor Philip Lowe said he did not expect to meet the