Summary: ACGB gradient steeper; US Treasury curve steeper.
The gradient of the ACGB yield curve became noticeably steeper as falls at the short end again contrasted with stable or higher yields elsewhere along the curve. By the end of the week, the 3-year/10-year spread had widened by 19bps to 47bps and the 3-year/20-year spread had gained 27bps to 81bps.
The gradient of the US Treasury curve also became steeper. The 2-year/10-year spread widened by 19bps to 38bps while the 2 year/30 year spread gained 27bps to 47bps over the week. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 3bps wider at 205bps.
