Summary: ACGB gradient steeper; US Treasury curve gradient also steeper.
The gradient of the ACGB yield curve became steeper as yields rose. By the end of the week, the 3-year/10-year spread had widened by 2bps to 56bps and the 3-year/20-year spread had gained 5bps to 110bps.
The gradient of the US Treasury curve also became steeper. The 2-year/10-year spread added 7bps to 83bps while the 2 year/30 year spread gained 13bps to 122bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 13bps higher at 143bps.
To find out more about the yield curve and its usefulness, click here or here.
*December futures