Summary: 3-month, 6-month BBSW unchanged; swap rates higher across curve; spreads wider.
3-month and 6-month BBSW both remained unchanged at 0.01% and 0.03% respectively.
Swap rates were again stable at the front of the curve but higher elsewhere along the swap curve. By the end of the week, the 1-year rate had returned to its starting point at 0.04%, the 3-year rate had crept up 1bp to 0.41%, the 5-year rate had gained 6bps to 0.84%, while 10-year and 15-year rates each finished 8bps higher at 1.46% and 1.74% respectively.
As a result, swap spreads increased except at the long end. At the end of the week, the 3-year spread had increased by 2bps to 16bps, the 5-year spread had widened by 5bps to 19bps while the 10-year spread finished unchanged at 15bps.
NB. Spreads are calculated with respect to “spot” Australian Commonwealth Government bond yields.
BBSW - SWAP RATES
| TERM TO MATURITY | Closing Rate | Δ WEEK | Δ MONTH |
|---|---|---|---|
| 30 Day | 0.01 | 0.00 | 0.00 |
| 90 Day | 0.01 | 0.00 | 0.00 |
| 180 Day | 0.03 | 0.00 | 0.00 |
| 1 Year | 0.04 | 0.00 | 0.01 |
| 3 Year | 0.41 | 0.01 | 0.07 |
| 5 Year | 0.84 | 0.06 | 0.18 |
| 10 Year | 1.46 | 0.08 | 0.27 |
| 15 Year | 1.74 | 0.08 | 0.27 |