Summary: ACGB gradient flatter; US Treasury curve flatter, although not for all measures.
The gradient of the ACGB yield curve became flatter as higher yields at the short end outpaced rises elsewhere along the curve. By the end of the week, the 3-year/10-year spread had narrowed by 10bps to 38bps and the 3-year/20-year spread had shed 16bps to 70bps.
The gradient of the US Treasury curve generally became flatter, although not for all measures. The 2-year/10-year spread tightened by 1bp to 20bps while the 2 year/30 year spread shed 18bps to 31bps over the week. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 20bps wider at 195bps.
