Summary: ACGB curve a little steeper; US Treasury curve noticeably steeper.
The gradient of the ACGB yield curve became a little steeper as higher yields at the long end outpaced the rises at the short end. By the end of the week, the 3-year/10-year spread had gained 3bps to 34bps and the 3-year/20-year spread had added 6bps to 64bps.
TThe gradient of the US Treasury curve finished the week noticeably steeper. The 2-year/10-year spread widened by 21bps to 43bps while the 2 year/30 year spread added 23bps to 52bps over the week. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 20bps wider at 230bps.
