Australia - Money Market Rate

For Australia, select interest rates: interbank, government bonds. The interbank overnight rate (a.k.a. the cash rate) is the operational target for the implementation of monetary policy by the Reserve Bank of Australia. Interbank cash rate daily market: target, actual, lowest, highest, volume of transactions, total return index.

Source table:

• F1. Interest rates and yields - Money market - Daily

Active:

• Measurements:
  • Percent per annum (% p.a.)
  • Percentage points (% pts.)
  • Unitary count (#)
  • Millions of Australian dollars (Mil. AUD)
  • Fixed-base index relative to 4 January 2011
• Adjustment: Not seasonally adjusted (NSA)
• Native frequency: Business daily (Monday to Friday)
• Start date: As early as 7 Apr 1976

Predecessors:

• Market interest rates - 1 Jul 1992 to 17 May 2013 ("_13")

F1: The 'Interbank Overnight Cash Rate' is a weighted average interest rate on overnight unsecured loans between banks in the Australian dollar market (the ‘Cash Market’). From 9 May 2016 the Cash Rate is calculated from transactions settled in the Reserve Bank Information Transfer System (RITS). For more details, see the Cash Rate Procedures Manual <http://www.rba.gov.au/mkt-operations/resources/cash-rate-methodology/cash-rate-procedures-manual.html>. From July 1998 until 6 May 2016, the Cash Rate is the weighted average of the interest rates at which banks borrowed and lent exchange settlement funds overnight, calculated from a survey of Cash Market participants. The 11am call rate is used prior to July 1998.

Definitions

These appear on the "Notes" sheet of each data file.

F1 Interest Rates and Yields – Money Market:

• The market which deals in short-term discount securities such as Treasury notes, bank bills and promissory notes. Major participants in this market include the Reserve Bank of Australia, banks, superannuation funds, insurance companies, investment trusts, investment banks, building societies and large corporates.
• The 'Target cash rate' is set by the Reserve Bank's Board at each Board meeting. From January 1990 the Bank commenced announcing an explicit target to the market. ‘Interbank rate’ is a weighted average of the interest rates at which banks have borrowed and lent exchange settlement funds overnight. The 11am call rate is used prior to July 1998.
• ‘Bank accepted bills/Negotiable Certificates of Deposit’ are estimated end of day bank bill rates sourced from ASX. Prior to January 2017, this series was sourced from AFMA. Prior to March 1995 estimated midday yields are shown.
  DISCLAIMER: End of Day data is part of the ASX Benchmark Data which is proprietary to the ASX Group. All rights are reserved. If you are an existing subscriber of ASX Benchmark Data, any use and reliance on this information is governed by the terms and conditions of your ASX Benchmark Data Subscriber Agreement. To the fullest extent permitted by law, all published ASX Benchmark Data is provided 'as is' and you may not rely on it as being accurate, timely, comprehensive or fit for a particular purpose.
•  ‘Overnight indexed swaps’ a bilaterally traded, or over-the-counter (OTC), derivative in which one party agrees to pay the other party a fixed interest rate in exchange for receiving the average cash rate recorded over the term of the swap. Overnight indexed swaps are closing market rates.
  Prior to April 2021, this series was sourced from Tullett Prebon (Australia) Pty Ltd.
•  'Treasury notes' are closing yields based on a survey of the market. There were no Treasury note yields between May 2002 and March 2009.

AOFM writes:

Treasury Indexed Bonds are medium to long-term securities for which the capital value of the security is adjusted for movements in the Consumer Price Index (CPI). Interest is paid quarterly, at a fixed rate, on the adjusted capital value. At maturity, investors receive the adjusted capital value of the security – the value adjusted for movement in the CPI over the life of the bond.

Interest rates and yields are representative. They are the midpoint of predominant bid and offer quotations in each market as identified by the RBA.

The daily government bond yields data are currently published by Yieldbrokers and distributed on the RBA's website. Prior to May 2013, the data are calculated by RBA and have been archived under the mnemonic name "RBAFCMYGBAG?DD.IAUS". Although the source changed but the overall methodology remained the same.

Further reading

At the source:

• Changes to statistical tables

At Australian Office of Financial Management (AOFM):

• Australian Government Securities
• Treasury Indexed Bonds

• Jul 2007 - Initial version.
• 25 Jul 2024, Phillip Thorne - Addendum from table F1: Properties.
• 3 Oct 2024, Phillip Thorne - Updated definitions for table F1.
• 15 Oct 2024, Phillip Thorne - Revived select series including Treasury Indexed Bonds.