Fallout from Westpac’s decision spread through the domestic money markets with participants reducing their expectations for interest rate level in general. The physical 90d bill rate fell 5bps to finish the week at its low of 2.13% and the 90d BBSW moved almost in tandem, dropping 4bps to 2.14%.
The swap curve moved down and flattened with swap rates lower across the board. 1y rates fell 5bps, 3y and 5y swap rates fell 4bps while 10y and 15y swap rates fell 6bps and 7bps respectively.
The 3y swap-to-bond spread edged up 1bps to 20bps while the 10y swap-to-bond spread remained stable, finishing the week at 29bps.
AFMA BBSW - SWAP RATES
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