Summary: ACGB gradient a little flatter; US Treasury curve moves in more-complicated fashion.
The gradient of the ACGB yield curve became a little flatter as yields at the short end increased by more than those elsewhere along the curve. By the end of the week, the 3-year/10-year spread had tightened by 1bp to 57bps and the 3-year/20-year spread had shed 6bps to 100bps.
The gradient of the US Treasury curve moved in a more-complicated fashion. The 2-year/10-year spread finished unchanged at 25bps while the 2 year/30 year spread lost 7bps to 61bps over the week. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 21bps wider at 162bps.
