JCB find the YieldReport to be an invaluable summary of all debt market activity. Whilst we are focussed on the highest grade bonds it is important to see what is..Angus Coote, Executive Director, JCB Active Bond Fund
Short-term money market rates softened slightly over the past week. The 1-month BBSW rate declined by 1 basis point to 3.53%, the 3-month rate fell 3 bps to 3.58%, and the 6-month rate eased 1 bp to 3.78%. Over the month, the 1-month rate dropped 3 bps, the 3-month rate remained unchanged, and the 6-month rose 8 bps. This reflects a flattening bias at the short end of the curve, suggesting a modest reduction in near-term funding cost expectations over the next half-year amid stabilising monetary conditions.
Medium- to long-term bond yields rose across all maturities during the week, indicating a shift toward higher long-term rate expectations. The 1-year rate increased 2 bps to 3.48%, the 3-year rose 5 bps to 3.54%, and the 5-year climbed 3 bps to 3.91%. Longer tenors also saw gains, with the 10-year up 5 bps to 4.32% and the 15-year up 4 bps to 4.54%.
On a monthly basis, yields rose between 10–16 bps, led by the 3-year (+16 bps) and 5-year (+15 bps) tenors. The curve remains upward-sloping, suggesting a potentially higher long-term rate environment amid resilient economic conditions.
