11 August – 15 August 2025

Summary:

The Bank Bill Swap Rate (BBSW) market moves reflected the RBA’s decision to cut the cash rate by 0.25% to 3.6% on the back of an improving inflation picture and weakening GDP growth prospects.

For the week ending 15^th August 2025, the 1-month BBSW held at 3.56% (down 7 bps), while the 3-month BBSW closed at 3.61% (down 8bps), based on daily data trends. The 6-month BBSW dropped 10 basis points to 3.72%, reflecting an easing short-end yield curve amid an RBA rate cut by 0.25% and possibly a further accommodative RBA stance in the coming months.

The longer end of the swap rate curve steepened during the week, with the 1-year swap rate down 5 basis points to 3.29%.  The 3-year swap rate dropped 4 basis points to end the week at 3.26%.  The 5-year swap rate dropped 4 basis points to 3.66%, reflecting investor expectations of a revised cash rate path for Australia following the RBA’s highly anticipated rate cut amid slowing domestic growth and uncertainties around US tariffs.

• Bank Bill Swap Rates

  TERM TO MATURITY	CLOSING RATE	Δ WEEK	Δ MONTH
  1 month	3.5624	-0.0701	-0.2226
  3 months	3.612	-0.0786	-0.1048
  6 months	3.7281	-0.095	-0.0618

• SWAP RATES

  TERM TO MATURITY	CLOSING RATE	Δ WEEK	Δ MONTH
  1 year	3.296	-0.0478	-0.1114
  3 years	3.2688	-0.0456	-0.1195
  5 years	3.6678	-0.0385	-0.1205
  10 years	4.1298	-0.0182	-0.127
  15 years	4.3825	-0.0042	-0.1187

Exhibit 1: Australian 3Y/10Y Bond Yield