Summary: Slope of ACGB curve hardly moves; US Treasury curve gradient generally less negative.
The gradient of the ACGB yield curve hardly moved as yields fell. By the end of the week, the 3-year/10-year spread had slipped 1bp to 36bps while the 3/20 year spread finished 1bp higher at 80bps.
The gradient of the US Treasury curve generally became less negative. The 2-year/10-year spread added 2bps to -58bps over the week while the 2 year/30 year spread finished 7bps higher at -32bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 14bps lower at -164bps.
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