Summary: Bank bill and BBSW rates up a touch or unchanged; swap rates generally unchanged; changes in swap spreads to ACGB yields mixed, near or below zero.
The physical bank bill rate ticked up 1bp to 0.09%, as did 3-month BBSW. 6-month BBSW remained unchanged at 0.12%.
Swap rates generally remained unchanged along the yield curve. By the end of the week, the 1-year rate had ticked up 1bp to 0.08%, the 3-year rate had slipped 1bp to 0.13% while 5-year, 10-year and 15-years all remained unchanged at 0.29%, 0.75% and 1.03% respectively.
As a result, swap spreads moved a little in both directions. By the end of the week, the 3-year spread had slipped 1bp to -4bps while 5-year and 10-year spreads each finished 1bp higher at +1bp and -4bps respectively.
Prima facie, a negative spread implies banks are lower risks than the Commonwealth Government. However, short-term factors such as the Government’s rate of issuance relative to that of banks can play a part.
BBSW - SWAP RATES
| TERM TO MATURITY | Closing Rate | Δ WEEK | Δ MONTH |
|---|---|---|---|
| 30 Day | 0.09 | 0.00 | -0.01 |
| 90 Day | 0.09 | 0.01 | 0.00 |
| 180 Day | 0.12 | 0.00 | -0.03 |
| 1 Year | 0.08 | 0.01 | -0.03 |
| 3 Year | 0.13 | -0.01 | -0.06 |
| 5 Year | 0.29 | 0.00 | -0.09 |
| 10 Year | 0.75 | 0.00 | -0.15 |
| 15 Year | 1.03 | 0.00 | -0.15 |