It is why there was an “E” in EMU: it was clear that structural convergence had to occur. And it is why there has always been a strong emphasis on the need for sustainable financial integration.
But in other cases, a credit-based benchmark, like BBSW will continue to make sense. Floating rate notes and corporate loans issued by banks are examples of this. But as I’ve said before, not all BBSW tenors are as robust as others.5 In particular, the 1month BBSW is largely a buy-back market. Accordingly, it is less liquid than other tenors.