Pro Capital Rates

In the first quarter of 2025, Australia’s bond market demonstrated renewed resilience as the yield curve bull‑steepened , according to analytics from Pro Capital Rates ’ Fixed Income Desk . The 3‑year government bond yield dropped by 12 basis points , while the 10‑year yield rose modestly—by approximately 5 bps—bringing the 10‑year yield to 4.85% . This combination reinforced a steeper curve profile that underpinned stable income expectations amid evolving policy dynamics. “The curve’s steepening signals investor confidence in carry, with shorter maturities grinding lower while long-end yields remain supported,” said Gary Kingshott , Managing Director at Pro Capital Rates. 📉 Yield Curve Dynamics: Key Metrics Tenor Start of Q1 Yield End of Q1 Yield Change (bps) 3-Year Govt Bond 3.78% 3.66% –12 5-Year Govt Bond 4.12% 4.28% 16 10-Year Govt Bond 4.80% 4.85% 5 This slight steepening contrasts with previous quarters' flattening and reflects recalibrating expectations around rate cuts a...

In a move that underscores the regulator’s continued efforts to support both depositor flexibility and systemic stability, the Australian Securities & Investments Commission (ASIC) has formally extended its long-standing relief on 31-day notice term deposits via Instrument 2025/172 , effective from March 28, 2025. This legislative remaking ensures that term deposits with a 31-day notice period retain their classification as “basic deposit products” —a key designation that directly impacts how they’re marketed, managed, and disclosed to investors. For sophisticated and wholesale investors, particularly those managing Self-Managed Superannuation Funds (SMSFs), this is not just a regulatory footnote—it’s a material change to how short-duration liquidity can be planned within fixed income strategies. What Is the 31-Day Notice Period—and Why Does It Matter? Traditionally, term deposits offer locked-in capital protection and guaranteed interest payments , with fixed terms ranging from ...