Summary: ACGB curve a little steeper; US Treasury curve more negative/less positive.
The gradient of the ACGB yield curve became a little steeper as yields rose. By the end of the week, the 3-year/10-year spread had widened by 6bps to 31bps while the 3/20 year spread had added 3bps to 63bps.
The various measures of the gradient of the US Treasury curve either became more negative or less positive. The 2-year/10-year spread had shed 9bps to -34bps over the week while the 2 year/30 year spread lost 18bps to -19bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 12bps tighter at 19bps.
To find out more about the yield curve and its usefulness, click here or here.