Summary: ACGB curve steeper; US Treasury curve generally less inverted.
The gradient of the ACGB yield curve steepened further this week. By the end of the week, the 3-year/10-year spread had widened by 2bps to 39bps while the 3/20 year spread finished 7bps higher at 80bps.
The gradient of the US Treasury curve generally became less inverted, although not for all measures. The 2-year/10-year spread had inched up 1bp to -71bps by the end of the week while the 2 year/30 year spread finished 7bps higher at -54bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished another 6bps lower at -117bps.
To find out more about the yield curve and its usefulness, click here or here.