Summary: Slope of ACGB curve flatter; US Treasury curve gradient generally steeper/less negative.
The gradient of the ACGB yield curve became slightly flatter as yields increased. By the end of the week, the 3-year/10-year spread had shed 2bps to 51bps while the 20 year spread finished 3bps lower at 85bps.
The gradient of the US Treasury curve generally became steeper/less negative. The 2-year/10-year spread gained 5bps to +18bps while the 2 year/30 year spread lost 2bps to +37bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 26bps higher at -12bps.
To find out more about the yield curve and its usefulness, click here or here.