Summary: ACGB curve steeper; US Treasury curve generally more inverted.
The gradient of the ACGB yield curve became a little steeper this week as yields rose again. By the end of the week, the 3-year/10-year spread had widened by 3bps to 32bps while the 3/20 year spread also finished 3bps higher at 68bps.
The gradient of the US Treasury curve generally became more negative. The 2-year/10-year spread had lost 4bps to -81bps by the end of the week while the 2 year/30 year spread finished 7bps lower at -76bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 2bps higher at -99bps.
To find out more about the yield curve and its usefulness, click here or here.