Summary: Slope of ACGB curve flatter; US Treasury curve gradient steeper/less negative.
The gradient of the ACGB yield curve again became a little flatter as yields increased. By the end of the week, the 3-year/10-year spread had lost 2bps to 50bps while the 20 year spread finished 3bps lower at 90bps.
The gradient of the US Treasury curve became steeper/less negative. The 2-year/10-year spread gained 10bps to +14bps while the 2 year/30 year spread increased by 13ps to +45bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 14bps higher at -53bps.
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To find out more about the yield curve and its usefulness, click here or here.