Summary: ACGB curve flatter; US Treasury curve generally more negative.
The gradient of the ACGB yield curve became flatter as yields rose. By the end of the week, the 3-year/10-year spread had lost 3bps to 37bps while the 3/20 year spread finished 6bps lower at 79bps.
The gradient of the US Treasury curve generally became more negative. The 2-year/10-year spread slipped 1bp to -60bps over the week while the 2 year/30 year spread finished 2bps lower at -39bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 4bps higher at -150bps.
To find out more about the yield curve and its usefulness, click here or here.