The physical bank bill rate fell by 8bps to finish at 0.13%, while 3-month BBSW lost 9bps, also to 0.13%. 6-month BBSW dropped by 14bps to 0.20%.
Swap rates outpaced their Commonwealth Government counterparts as yields fell. The 1-year swap rate lost 7bps to 0.20%, the 3-year rate decreased by 6bps to 0.33%, the 5-year rate shed 8bps to 0.54%, the 10-year rate decreased by 6bps to 0.95% while the 15-year rate finished 4bps lower at 1.12%.
As a result, swap spreads tightened except at the long end where they remained stable. By the end of the week, the 3-year spread had fallen from 15bps to 7bps, the 5-year rate had narrowed from 28bps to 12bps while the 10-year spread finished unchanged at 11bps.
BBSW - SWAP RATES
| TERM TO MATURITY | Closing Rate | Δ WEEK | Δ MONTH |
|---|---|---|---|
| 30 Day | 0.13 | -0.09 | -0.52 |
| 90 Day | 0.13 | -0.09 | -0.49 |
| 180 Day | 0.20 | -0.14 | -0.53 |
| 1 Year | 0.20 | -0.07 | -0.37 |
| 3 Year | 0.33 | -0.06 | -0.34 |
| 5 Year | 0.54 | -0.08 | -0.37 |
| 10 Year | 0.95 | -0.06 | -0.22 |
| 15 Year | 1.12 | -0.04 | -0.17 |