Implied forwards

Forward BKBM rates

Forward BKBM is the 90-day bank-bill rate the market prices in for each future quarter, read out of today's swap curve — the level at which fixing and floating break even. A breakeven, not a forecast.

As at 2026-09-15, the New Zealand 3-month BKBM bank-bill rate is 3.14%. The wholesale swap curve prices floating debt to average about 4.22% over the next 3 years and 4.43% over 5 years — the indicative breakeven a fixed rate is judged against, not a forecast.

See also: Swap ratesRate historyBond spreadsIssue marginsBKBM

What floating is priced to average

As at 2026-09-15 · updated every trading day

Reference pointRate
Floating now — 3-month BKBM3.14%
Priced to average over 3 years4.22%
Priced to average over 5 years4.43%

What is forward BKBM?

Forward BKBM is the 90-day bank-bill rate the market prices in for each future quarter, read out of today's swap curve. An N-year swap is close to the average of the floating rate expected over those N years, so it is the fixed level at which fixing and floating break even — a breakeven, not a forecast.

How do forward rates inform a fix-or-float decision?

The forward curve is the market's implied path for your future floating cost, and the level a fixed rate or swap is priced to beat. It carries a term premium, so it usually sits above where the rate actually goes — the right reference for a fix-or-float decision, a high one as a prediction. Business Borrowing shows the comparison; it is not financial advice.

Market data: Swap ratesRate historyForward BKBMBond spreadsIssue marginsBKBM

Indicative market data for benchmarking — not financial advice, a credit rating, or an offer of finance. See the Terms.

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