Summary: ACGB curve flatter; US Treasury curve moves haphazardly.
The gradient of the ACGB yield curve became flatter this week. By the end of the week, the 3-year/10-year spread had narrowed by 4bps to 35bps while the 3/20 year spread finished 8bps lower at 72bps.
The gradient of the US Treasury curve moved in a haphazard fashion. The 2-year/10-year spread had moved up 3bps to -68bps by the end of the week while the 2 year/30 year spread finished 3bps lower at -57bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 1bp higher at -116bps.
To find out more about the yield curve and its usefulness, click here or here.