Summary: Slope of ACGB curve steeper; US Treasury curve gradient generally less negative.
The gradient of the ACGB yield curve became somewhat steeper as yields fell. By the end of the week, the 3-year/10-year spread had returned to its starting point at 43bps while the 3/20 year spread finished 3bps higher at 76bps.
The gradient of the US Treasury curve generally became less negative this week. The 2-year/10-year spread gained 8bps to -34bps while the 2 year/30 year spread finished 10bps higher at -20bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 3bps lower at -118bps.
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