Summary: ACGB curve steeper/flatter depending on measure; US Treasury curve less negative/more positive.
The gradient of the ACGB yield curve became a little steeper or a touch flatter depending on the measure used. By the end of the week, the 3-year/10-year spread had widened by 3bps to 34bps while the 3/20 year spread slipped 1bp to 62bps.
The various measures of the gradient of the US Treasury curve either became less negative or more positive. The 2-year/10-year spread gained 14bps to -20bps over the week while the 2 year/30 year spread added 14bps to -5bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 11bps wider at 30bps.
To find out more about the yield curve and its usefulness, click here or here.