Summary: ACGB curve almost unchanged; US Treasury curve more negative.
The gradient of the ACGB yield curve barely changed as yields rose. By the end of the week, the 3-year/10-year spread had returned to its starting point at 40bps while the 3/20 year spread finished 1bp lower at 85bps.
The gradient of the US Treasury curve became more negative. The 2-year/10-year spread lost 3bps to -59bps over the week while the 2 year/30 year spread also finished 3bps lower at -37bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 8bps lower at -154bps.
To find out more about the yield curve and its usefulness, click here or here.