Summary: Slope of ACGB curve becomes 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 5bps to 33bps while the 3/20 year spread finished 6bps lower at 80bps.
The gradient of the US Treasury curve generally became more negative. The 2-year/10-year spread lost 6bps to -52bps over the week while the 2 year/30 year spread finished 5bps lower at -20bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 8bps higher at -170bps.
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