how to measure the funding liquidity, i.e., equivalent U.S. TED spread, in the Australian market? I'm stuck on how to estimate the credit (counterparty) risk in interbank lending in the Australian market. TED spread is usually measured as the difference between the LIBOR rate and the T-bill rate. However, when I use the same framework to calculate the Australian TED spread, it is often negative. I use two methods:
1. 3-month BBSW (bank bill swap rate) -  3-month bank bill rate (or cash rate)
2. 3-month LIBOR in Australian Dollar - 3-month bank bill rate (or cash rate)

The negative value definitely makes no sense as the former should always be larger than the risk-free rate.

Can anyone illuminate how this works? or did I use the wrong proxy?
it is measured by the swap spread, the difference between the 3-month bank bill swap rate (BBSW3M) or 3-month bank bill rate and the 3-month overnight indexed swap rates (OIS3M) captures the inherent bank credit risk and therefore funding liquidity in the inter-bank lending market.