Summary:
Short-term money market rates showed mixed movements over the past week. The 1-month yield edged down 1 basis point to 3.54%, while the 3-month yield rose 1 bp to 3.61% and the 6-month yield increased 3 bps to 3.79%. Over the past month, the 1-month rate fell 2 bps, but the 3- and 6-month maturities climbed 3 bps and 12 bps respectively. The data indicates a mild steepening at the short end of the yield curve, reflecting slightly higher expectations for funding costs over the next half-year amid stabilising monetary conditions.
Medium- to long-term bond yields eased slightly over the week but remain higher over the month. The 1-year yield dipped 1 bp to 3.46%, while 3- and 10-year yields each fell 4 bps to 3.49% and 4.27% respectively. The 5- and 15-year yields declined 2 bps to 3.88% and 4.50%. Over the month, however, yields rose across most maturities, led by the 3-year (+14 bps) and 1-year (+13 bps) tenors. The curve remains upward-sloping, suggesting easing short-term pressures but persistent expectations of higher long-term rates amid resilient economic conditions.
Bank Bill Swap Rates
TERM TO MATURITY CLOSING RATE Δ WEEK Δ MONTH 1 month 3.54 -0.01 -0.02 3 months 3.61 0.01 0.03 6 months 3.79 0.03 0.12 SWAP RATES
TERM TO MATURITY CLOSING RATE Δ WEEK Δ MONTH 1 year 3.46 -0.01 0.13 3 years 3.49 -0.04 0.14 5 years 3.88 -0.02 0.11 10 years 4.27 -0.04 0.02 15 years 4.5 -0.02 0
Exhibit 1: Australian 3Y/10Y Bond Yield
