Summary: Slope of ACGB curve steeper; US Treasury curve gradient generally less negative.
The gradient of the ACGB yield curve steepened as yields fell. By the end of the week, the 3-year/10-year spread had added 2bps to 38bps while the 3/20 year spread finished 6bps higher at 86bps.
The gradient of the US Treasury curve generally became less negative for a second consecutive week. The 2-year/10-year spread added 12bps to -46bps over the week while the 2 year/30 year spread finished 17bps higher at -15bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 14bps lower at -178bps.
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