Summary: ACGB curve steeper; US Treasury curve generally flatter.
The gradient of the ACGB yield curve became a little steeper as 10-year yields rose by greater amounts than yields at other maturities. By the end of the week, the 3-year/10-year spread had gained 3bps to 46bps while the 3-year/20-year spread had returned to its starting point at 76bps.
In contrast, the gradient of the US Treasury curve finished the week flatter, although not for all measures. The 2-year/10-year spread narrowed by 2bps to 26bps while the 2 year/30 year spread lost 9bps to 41bps over the week. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 7bps wider at 176bps.
