Summary: Slope of ACGB curve flatter; US Treasury curve gradient generally more negative.
The gradient of the ACGB yield curve became flatter as yields increased. By the end of the week, the 3-year/10-year spread had lost 9bps to 13bps while the 3/20 year spread finished 18bps lower at 43bps.
The gradient of the US Treasury curve generally became more negative. The 2-year/10-year spread lost 5bps to -86bps over the week while the 2 year/30 year spread finished 9bps lower at -72bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 17bps higher at -150bps.
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