Summary:
The Bank Bill Swap Rate (BBSW) market moves reflected the RBA’s decision to cut the cash rate by 0.25% to 3.6% earlier this month.
For the week ending 29th August 2025, the 1-month BBSW held at 3.56% (flat), while the 3-month BBSW closed at 3.56% (flat), based on daily data trends. The 6-month BBSW was also flat at 3.66, reflecting lack of any interest rate-sensitive news and neutral market sentiment towards short term rate expectations.
The longer end of the swap rate curve also remains steady over the week, with the 1-year swap rate up 2 basis points to 3.32%. The 3-year swap rate increased 3 basis points to end the week at 3.32%. The 5-year swap rate increased 6 basis points to 3.72%, reflecting investor expectations of a revised cash rate path for Australia following the RBA’s highly anticipated rate cut amid slowing domestic growth and uncertainties surrounding US tariffs.
Bank Bill Swap Rates
TERM TO MATURITY CLOSING RATE Δ WEEK Δ MONTH 1 month 3.5575 0 -0.135 3 months 3.5622 -0.0094 -0.1437 6 months 3.6591 -0.0009 -0.128 SWAP RATES
TERM TO MATURITY CLOSING RATE Δ WEEK Δ MONTH 1 year 3.3242 0.0105 -0.068 3 years 3.3178 -0.003 -0.0332 5 years 3.7203 -0.0129 -0.0344 10 years 4.1808 -0.0297 -0.0157 15 years 4.4308 -0.0297 -0.0055
Exhibit 1: Australian 3Y/10Y Bond Yield
