Summary: 3-month, 6-month BBSW unchanged; swap rates higher across curve; spreads wider.
3-month and 6-month BBSW both remained unchanged at 0.01% and 0.03% respectively.
Swap rates rose by increasing amounts along the curve, generally outpacing their Commonwealth Government benchmarks. By the end of the week, the 1-year rate had returned to its starting point at 0.04%, the 3-year rate had added 2bps to 0.42%, the 5-year rate had gained 3bps to 0.79% while 10-year and 15-year rates each finished 8bps higher at 1.37% and 1.64% respectively.
As a result, swap spreads widened. By the end of the week, the 3-year spread had crept up 1bp to 14bps, the 5-year spread had widened by 2bps to 15bps while the 10-year spread also finished 5bps higher at 15bps.
NB. Spreads are calculated with respect to “spot” Australian Commonwealth Government bond yields.
BBSW - SWAP RATES
| TERM TO MATURITY | Closing Rate | Δ WEEK | Δ MONTH |
|---|---|---|---|
| 30 Day | 0.00 | -0.01 | -0.01 |
| 90 Day | 0.01 | 0.00 | -0.01 |
| 180 Day | 0.03 | 0.00 | -0.01 |
| 1 Year | 0.04 | 0.00 | 0.00 |
| 3 Year | 0.42 | 0.02 | -0.01 |
| 5 Year | 0.79 | 0.03 | 0.02 |
| 10 Year | 1.37 | 0.08 | 0.05 |
| 15 Year | 1.64 | 0.08 | 0.03 |