Summary: ACGB curve slightly flatter; US Treasury curve essentially unchanged.
The gradient of the ACGB yield curve became slightly flatter as yields at the short end remained stable while yields elsewhere along the curve declined. By the end of the week, the 3-year/10-year spread had narrowed by 1bp to 31bps and the 3-year/20-year spread had lost 6bps to 58bps.
The gradient of the US Treasury curve finished the week essentially unchanged. The 2-year/10-year spread tightened by 1bp to 22bps while the 2 year/30 year spread added 1bps to 29bps over the week. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 1bp wider at 210bps.
