Summary: ACGB curve almost stable; US Treasury curve less negative.
The gradient of the ACGB yield curve almost essentially stable as yields rose. By the end of the week, the 3-year/10-year spread had lost 2bps to 39bps while the 3/20 year spread finished 1bp higher at 70bps.
The traditional measures of the gradient of the US Treasury curve became less negative. The 2-year/10-year spread gained 16bps to -36bps over the week while the 2 year/30 year spread added 20bps to -34bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 3ps wider at +26bps.
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