Repo rates and spreads* - 2019 in review
In a declining rate environment outright repo rates fell from 2.20% to 0.85%, averaging 1.42% and finishing the year around 1.15%.
Secured funding repo rates continued to trade at a premium to unsecured lending rates.
Average repo spreads* in 2019 were:
- +11.6 bps over 1m BBSW
- +28.6 bps over RBA Cash Rate
- +32.2 bps over 1 month OIS
Quarter end repo rate spikes continued to be seen with spreads jumping to +40-55 bps over RBA cash rate.
Repo outperformance over RBA cash rate averaged 27% in 2019 ie the repo rate on average was 27% higher than the RBA cash rate.
*Source: RBA, Bloomberg