Summary: ACGB curve steeper; US Treasury curve moves inconsistently.
ACGB curve was marginally steeper for the 3-year/10-year spread, 3/20 year spread narrowed; US Treasury curves moved inconsistently.
The traditional measures of the gradient of the US Treasury curve moved inconsistently. The 2-year/10-year spread added 7bps to -71ps over the week while the 2 year/30 year spread finished 14bps higher at -66bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 9bps lower at -81bps.
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