AUD Swaps: Spreads wider; Fly flow; ADB Kanga

AUD swap spreads have edged wider. There was trade in the 5s/10s/30s butterfly spread. ADB issued a 3y Kangaroo Bond.

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  • Spreads edge out; Fly flow

  • New issues


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Spreads edge out; Fly flow

The short-end of the AUD rates curve is trading firmer after the release of a weaker than expected US CPI report overnight. In late morning Sydney trading futures implied yields are up to 1.5bps lower and the 3s/10s futures curve is 2.5bps steeper at 21bps.


In the swap market this morning there has been unwind flow across the 7-10 year sector of the curve. Interest in the belly has backed trade in 4- and 5-year swaps at levels around 3.525-3.5275% and 3.52%. 10-year swaps have traded in a 3.69-3.71% range.


On the curve the 5s/10s/30s butterfly spread changed hands around 44bps.


There have been a few deals in forward space. 1m10y traded around 3.7425-3.745%. Trades have also been recorded in the 4m3y and 4m5y structures at levels around 3.6375% and 3.625%.


Swap spreads have widened a little today and with the move being led by the short end the 3s/10s box spread has compressed to 11bps. The 3- and 10-year EFPs are marked around 33.5bps and 44.5bps currently.



New issues

  • Barclays Bank PLC sold a AUD14m callable 5yNC1 zero coupon bond in a self led deal. It is callable annually from Aug 2023 and if not called previously will redeem at 130.8199 on Aug 16, 2027. It yields 5.52%.


  • CBA raised AUD4.5bn by issuing 3- and 5-year fixed- and floating-rate Domestic Bonds as follows:


    • AUD1bn 4.20% Aug 18, 2025 (price 99.877, yield 4.244%).

    • AUD1.2bn Aug 18, 2025 FRN paying 3m BBSW + 80bps.

    • AUD900m 4.40% Aug 18, 2027 (99.676, 4.473%).

    • AUD1.4bn Aug 18, 2027 FRN paying 3m BBSW + 102bps.


  • Asian Development Bank added AUD450m to its 3.70% Jun 17, 2025 Kangaroo Bond in a deal led jointly by ANZ, RBCCM, TD Securities. The tap deal took outstanding issuance to AUD1.15bn.


  • Treasury Corporation of Victoria upsized existing bond issues, as follows:


    • AUD94.8m 1.50% Sep 10, 2031.

    • AUD15m 2.25% Nov 20, 2034.


  • New South Wales Treasury Corporation added AUD50m to its 3.50% Nov 20, 2037 bond.


  • Heartland Australia Group Pty Limited added AUD30m to its Jul 9, 2024 FRN in a deal led by Westpac. The tap took outstanding issuance to AUD75m.


  • BNG Bank NV added AUD25m to its 1.60% Nov 27, 2030 Kangaroo Bond in a deal led by RBCCM. The tap took the deal size to AUD615m.


  • Shinhan Bank issued a AUD50m 1-year FRN through ANZ. It pays 3m BBSW + 55bps and matures Nov 20, 2023.


  • Natixis sold a AUD17.25m callable 15yNC5 fixed rate bond in a self led deal. It pays an annual 5.75% coupon and is callable at par annually from Aug 2027. If not called previously the deal matures Aug 18, 2037.