Summary: BBSW unchanged/touch lower; swap rates rise at short end and belly, fall at long end; spreads rise.
3-month BBSW remained unchanged at 0.04% while 6-month BBSW slipped 1bp to 0.09%.
Swap rates increased at the front and belly of the curve but declined at the long end, unlike their Commonwealth Government benchmarks which fell all along the curve. By the end of the week, the 1-year rate had returned to its starting point at 0.05%, the 3-year rate had gained 4bps to 0.34%, the 5-year rate had added 2bps to 0.85%, the 10-year rate had lost 3bps to 1.68% and the 15-year rate finished 4bps lower at 2.06%.
As a result, swap spreads were pretty stable. By the end of the week, the 3-year spread had increased by 7bps to 28bps while the 10-year spread finished 3bps higher at 5bps.
BBSW - SWAP RATES
| TERM TO MATURITY | Closing Rate | Δ WEEK | Δ MONTH |
|---|---|---|---|
| 30 Day | 0.01 | 0.00 | -0.01 |
| 90 Day | 0.04 | 0.00 | 0.00 |
| 180 Day | 0.09 | -0.01 | -0.01 |
| 1 Year | 0.05 | 0.00 | -0.02 |
| 3 Year | 0.34 | 0.04 | 0.01 |
| 5 Year | 0.85 | 0.02 | 0.00 |
| 10 Year | 1.68 | -0.03 | -0.08 |
| 15 Year | 2.06 | -0.04 | -0.07 |