AUD Swaps: Good 3-10y bid after bank liquidation; CA plans inaugural Kanga

The liquidation of Silvergate Capital Corp triggered demand for AUD rates and 3-10y swaps have been well offered. CA plans an inaugural Kanga offer.

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  • Good 3-10y offers as Silvergate Bank decides to shut down

  • New issues – CA plans inaugural Kangaroo bonds


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Good 3-10y offers as Silvergate Bank decides to shut down

The AUD rates market rallied hard, tracking the move in the USD rates market. On Thursday, equities in the US tumbled and the rates market surged following the collapse of Silvergate Capital Corp as it triggered concerns over more defaults as businesses wouldn’t survive under the high interest rate environment, or if the US Fed re-accelerates its tightening pace.


In mid-afternoon Sydney trading 3-year bond future was up 10-ticks at 96.658, and the 3s/10s futures curve was 2bps flatter at 25bps.


Worries over the long-term effect in the US and Australian economy have backed good and busy receiving in 10-year AUD swaps. A dealer reported receiving there mostly around 4.145% and 4.165% on the day, down from previous close of 4.265%. 3-year traded down to 9bps lower after lunch break before last seen changing hands around 7.75bps lower of 3.79%. 5-year traded in several clips and made a downside break below 4% again, after such attempt earlier this week. It traded down to 3.905% although the majority of the flow has been between 3.935% and 3.965%. These compared to previous close of 4.035%.


EFPs were wider as swaps have been underperforming their underlying ACGBs on the rally. Key EFPs were marked as: 3-year up 2.5bps at 45.25bps, 5-year up 1bp to 60.5bps, 10-year up 1.25bps at 56.5bps.



New issues – CA plans inaugural Kangaroo bonds

  • Credit Agricole is planning an inaugural Kangaroo bond offer. It has mandated NAB and itself to arrange a non-deal roadshow in Melbourne on March 28 and Sydney on March 29 and 30.