Summary: ACGB curve flatter; US Treasury curve flatter.
The gradient of the ACGB yield curve became flatter as yields fell by greater amounts at the long end. By the end of the week, the 3-year/10-year spread had lost 7bps to 43bps and the 3-year/20-year spread had slipped 1bp to 81bps.
The gradient of the US Treasury curve also finished the week flatter. The 2-year/10-year spread tightened by 11bps to 22bps while the 2 year/30 year spread lost 8bps to 42bps over the week. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 18bps tighter at 194bps.
