Summary: Slope of ACGB curve flatter again; US Treasury curve gradient generally more negative.
The gradient of the ACGB yield curve again became flatter as yields increased. By the end of the week, the 3-year/10-year spread had lost 4bps to 29bps while the 3/20 year spread finished 8bps lower at 72bps.
The gradient of the US Treasury curve generally became more negative. The 2-year/10-year spread lost 6bps to -58bps over the week while the 2 year/30 year spread finished 13bps lower at -33bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 14bps higher at -156bps.
To find out more about the yield curve and its usefulness, click here or here.