Summary: BBSW lower; swap rates slip; spreads slightly tighter.
3-month BBSW slipped 1bp to 0.03% while 6-month BBSW lost 2bps to 0.07%.
Swap rates declined almost uniformly along the curve, unlike their Commonwealth Government benchmarks which ended the week stable. By the end of the week, 1-year and 3-year rates had each slipped 1bp to 0.04% and 0.33% respectively, the 5-year rate had returned to its starting point at 0.85% while 10-year and 15-year rates also slipped 1bp each to 1.67% and 2.05% respectively.
As a result, swap spreads tightened slightly. By the end of the week, 3-year and 10-year spreads had declined by 1bp each to 27bps and 4bps respectively.
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 | -0.01 |
| 180 Day | 0.07 | -0.02 | -0.03 |
| 1 Year | 0.04 | -0.01 | -0.03 |
| 3 Year | 0.33 | -0.01 | 0.01 |
| 5 Year | 0.85 | 0.00 | 0.02 |
| 10 Year | 1.67 | -0.01 | -0.02 |
| 15 Year | 2.05 | -0.01 | -0.01 |