The physical bank bill rate increased by 1bp to 1.76% while 3 month BBSW increased by 2bps to 1.76%.
The government bond yield curve flattened as short-term and medium term yields rose, while swap rates tended to fall at the long end. 1 year, 3 year and 5 year (swap) rates all remained unchanged at 1.79%, 2.01% and 2.35% respectively, while the 10 year rate lost 2bps to 2.70% and the 15 year rate fell 3bps to 2.92%.
Consequently, the 3 year swap spread contracted by 1bp again, this week to 6bps, the 5 year spread lost 2bps to 22bps and the 10 year spread tightened by 2bps to 17bps.
AFMA BBSW - SWAP RATES
| TERM TO MATURITY | Closing Rate | Δ WEEK | Δ MONTH |
|---|---|---|---|
| 30 Day | 1.68 | 0.02 | 0.08 |
| 90 Day | 1.76 | 0.01 | 0.06 |
| 180 Day | 1.92 | 0.00 | 0.04 |
| 1 Year | 1.79 | 0.00 | 0.02 |
| 3 Year | 2.01 | 0.00 | -0.09 |
| 5 Year | 2.35 | 0.00 | -0.16 |
| 10 Year | 2.70 | -0.02 | -0.25 |
| 15 Year | 2.92 | -0.03 | -0.27 |