Summary:
Short-Term Money Market Rates (BBSW)
Short-term BBSW rates continued to ease across all tenors this week. The 1-month rate declined by 4 basis points to 3.47%, the 3-month fell 7 bps to 3.50%, and the 6-month dropped 11 bps to 3.66%. Over the month, the 1-month rate fell 8 bps, the 3-month declined 6 bps, and the 6-month eased 2 bps, indicating a flattening bias at the short end. This suggests that expectations for near-term funding costs are softening further, possibly reflecting improved liquidity conditions or reduced short-term rate pressures.
Bank Bill Swap Rates
TERM TO MATURITY CLOSING RATE Δ WEEK Δ MONTH 1 month 3.47 -0.04 -0.08 3 months 3.5 -0.07 -0.06 6 months 3.66 -0.11 -0.02
Medium- to Long-Term Swap Rates
Swap rates rebounded modestly across all maturities during the week. The 1-year rate rose 1 bp to 3.35%, while the 3-year and 5-year tenors increased 5 bps and 6 bps to 3.40% and 3.78% respectively. Longer-term yields also edged higher, with the 10-year up 4 bps to 4.19%, and the 15-year gaining 6 bps to 4.41%. Monthly changes were minimal, suggesting a stabilisation in rate expectations.
The curve remains upward-sloping, and the slight uptick in yields may reflect renewed optimism around economic resilience or a recalibration of rate expectations following the prior week’s sharp decline.
SWAP RATES
TERM TO MATURITY CLOSING RATE Δ WEEK Δ MONTH 1 year 3.35 0.01 0 3 years 3.4 0.05 0.02 5 years 3.78 0.06 0.02 10 years 4.19 0.04 0.01 15 years 4.41 0.06 0 - Exhibit 1: Australian 3Y/10Y Bond Yield
