Summary: Slope of ACGB curve flatter; US Treasury curve gradient more negative.
The gradient of the ACGB yield curve became flatter as yields decreased. By the end of the week, the 3-year/10-year spread had lost 8bps to 22bps while the 3/20 year spread finished 7bps lower at 61bps.
The gradient of the US Treasury curve became more negative. The 2-year/10-year spread lost 5bps to -81bps over the week while the 2 year/30 year spread finished 3bps lower at -63bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 21bps lower at -167bps.
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