Summary: ACGB curve flatter; US Treasury curve barely changes.
The gradient of the ACGB yield curve became flatter this week as yields rose. By the end of the week, the 3-year/10-year spread had narrowed by 9bps to 29bps while the 3/20 year spread finished 16bps lower at 65bps.
The gradient of the US Treasury curve barely changed. The 2-year/10-year spread had inched up 1bp to -77bps by the end of the week while the 2 year/30 year spread finished 1bp lower at -69bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 9bps higher at -101bps.
To find out more about the yield curve and its usefulness, click here or here.