Australian 10-Year Swap Spreads Near Record Low, Echoing U.S.'s
- Yields rise globally as bets firm for Fed liftoff in December
- CBA not ruling out chance of negative Australian swap spreads
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Australia’s 10-year interest-rate swaps held near a record low relative to government yields as the impact of rising sovereign debt yields is exacerbated by tighter regulation on bond dealers.
The 10-year swap spread to bond futures was 5.75 basis points on Thursday, after closing at an unprecedented 5.375 points a day earlier. It’s fallen from near 23 basis points at the end of October. Australia’s 10-year government note yield climbed to an almost four-month high after data showed the unemployment rate unexpectedly dropped by the most in five years.