Summary: Slope of ACGB curve steepens; US Treasury curve gradient generally less negative.
The gradient of the ACGB yield curve became steeper as yields fell. By the end of the week, the 3-year/10-year spread had gained 3bps to 31bps while the 20 year spread finished 5bps higher at 64bps.
The gradient of the US Treasury curve generally became less negative again this week. The 2-year/10-year spread gained 5bps to -27bps while the 2 year/30 year spread increased by 6bps to -6bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 8bps lower at -115bps.
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