Summary: Slope of ACGB curve moves inconsistently; US Treasury curve gradient generally more negative.
The gradient of the ACGB yield curve moved somewhat inconsistently as yields increased. By the end of the week, the 3-year/10-year spread had added 1bp to 30bps while the 3/20 year spread finished 4bps lower at 68bps.
The gradient of the US Treasury curve generally became more negative. The 2-year/10-year spread shed 18bps to -76bps over the week while the 2 year/30 year spread finished 27bps lower at -60bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 10bps higher at -156bps.
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