Summary: Slope of ACGB curve steepens; US Treasury curve gradient more positive/less negative.
The gradient of the ACGB yield curve became steeper as yields increased. By the end of the week, the 3-year/10-year spread had gained 12bps to 52bps while the 20 year spread finished 11bps higher at 91bps.
The gradient of the US Treasury curve became more positive/less negative. The 2-year/10-year spread gained 6bps to +13bps while the 2 year/30 year spread increased by 8bps to +48bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 31bps higher at -92bps.
To find out more about the yield curve and its usefulness, click here or here.