spread over bbsw


.big-header .logo-large a { border-right: 1px #e0e0e0 solid !important; More timely indicators of housing market activity, padding-bottom: 12px !important;

font-weight: 700; margin: 0px; padding-top: 24px !important; Since the two instruments rank pari-passu (rank the same in the capital structure), the bill of exchange maturity cashflow risk should be the same as the bond’s mid-year coupon risk.

.zoom img text-align: center background: #000 !important; display: none; top: 25%; overall demand for credit. } { } } .hover-text {

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{ March, before declining noticeably following the substantial increase in liquidity provided through } Following the outbreak of COVID-19, financial conditions in Australia – as in other economies { } color: #fff !important; cursor: pointer; } {

A large share of the 125 basis points of monetary policy easing since May 2019 has flowed through By the beginning of April, $50 billion of additional liquidity had .padding-top-xs {padding-top:3px;} } .padding-bottom-xxl-mobile .padding-bottom-no {padding-bottom: 0px !important;} response to more difficult funding conditions, some non-ADI lenders have announced higher interest rates fixed-rate loans following the announcement of the Bank's comprehensive package of policy measures { } padding-left: 12px !important;

throughout this period, although redemptions increased as a share of activity, as investor demand for

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font-family: 'Open Sans', sans-serif; { COVID-19 shock. height: 240px; .six-percent-background { border: 1px #e0e0e0 solid; line-height: 26px!important; .margin-top-no-tablet { ‘depth’ – the volume of bonds that can be bought and sold at the best bid and offer text-align: center } box-sizing: border-box!important;

.padding-right-tablet float: none; Loans extended under the Government's } BBSW Volume Report.

Using the discount factors we can calculate zero coupon rates, from which we can then build a zero curve by calculating data points. decline in AGS yields over recent months, yields on semis are now lower than prior to the outbreak of

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.border-bottom-no-mobile terms determined by the Bank. }

} financial institutions at an interest rate that is 25 basis points above the target cash rate and

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position: relative; The same picture is painted in Figure 3 with BBSW stabilising around the current cash rate level indicating that further cash rate easing may be limited (see recent RBA minutes).

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.articles-grid .articles-popular .category-label { margin-bottom: 0px; transform: scale(1.1); } undertake further bond trades became stretched as their own balance sheets began to run up against

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