Summary: ACGB gradient flatter for third consecutive week; US Treasury curve gradient also flatter.
The gradient of the ACGB yield curve became flatter for a third consecutive week as higher yields at the short end again outran those at the long end. By the end of the week, the 3-year/10-year spread had narrowed by 7bps to 49bps and the 3-year/20-year spread had lost 8bps to 98bps.
The gradient of the US Treasury curve also became flatter. The 2-year/10-year spread lost 14bps to 61bps over the week while the 2 year/30 year spread shed 16bps to 91bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 1bp lower at 158bps.
