Summary: Slope of ACGB curve a touch flatter; US Treasury curve gradient more negative.
The gradient of the ACGB yield curve became a touch flatter as yields barely changed. By the end of the week, 3-year/10-year spread had slipped 1bp to 43bps while the 3/20 year spread also finished 1bp lower at 73bps.
The gradient of the US Treasury curve generally more negative this week. The 2-year/10-year spread lost 7bps to -42bps while the 2 year/30 year spread finished 10bps lower at -30bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 7bps lower at -115bps.
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