Summary: ACGB curve flatter; US Treasury curve again displays inconsistency.
The gradient of the ACGB yield curve became flatter as the rises of shorter-term Australian yields outpaced the gains of their longer-term counterparts. By the end of the week, the 3-year/10-year spread had shed 10bps to 21bps while the 3-year/20-year spread had narrowed by 10bps to 56bps.
The various measures of the gradient of the US Treasury curve again displayed some inconsistency. The 2-year/10-year spread moved further into inverted territory as it shed 10bps to -33bps while the 2 year/30 year spread lost 27bps to -14bps over the week. In contrast, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 5bps tighter at 33bps.
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