Summary: ACGB curve flatter; US Treasury curve also flatter.
The gradient of the ACGB yield curve became slightly flatter as short-term yields outpaced rises at the long end. By the end of the week, the 3-year/10-year spread had lost 3bps* to 29bps while the 3-year/20-year spread had shed 7bps* to 50bps.
* September futures
The measures of the gradient of the US Treasury curve also finished the week flatter. The 2-year/10-year spread tightened by 5bps to 5bps while the 2 year/30 year spread lost 4bps to 9bps over the week. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 10bps narrower at 173bps.
