Summary: 3-month BBSW inches up 1bp, 6-month BBSW unchanged; swap rates lower across curve; spreads fairly stable.
3-month BBSW inched up 1bp to 0.03% while 6-month BBSW remained unchanged at 0.06%.
Swap rates fell by increasing amounts along the curve, generally in line with their Commonwealth Government benchmarks. By the end of the week, the 1-year rate had lost 2bps to 0.05%, the 3-year rate had shed 3bps to 0.38%, 5-year and 10-year rates had each fallen by 7bps to 0.72% and 1.29% while the 15-year rate finished 6bps lower at 1.59%.
As a result, swap spreads remained fairly stable. By the end of the week, the 3-year spread remained unchanged at 11bps, the 5-year spread had slipped 1bp to 10bps while the 10-year spread crept up 1bp to 9bps.
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 | 0.03 | 0.01 | 0.00 |
| 180 Day | 0.06 | 0.00 | -0.01 |
| 1 Year | 0.05 | -0.02 | -0.03 |
| 3 Year | 0.38 | -0.03 | -0.10 |
| 5 Year | 0.72 | -0.07 | -0.20 |
| 10 Year | 1.29 | -0.07 | -0.33 |
| 15 Year | 1.57 | -0.06 | -0.35 |