Summary: Slope of ACGB curve steepens; US Treasury curve gradient generally more negative/less positive.
The gradient of the ACGB yield curve became slightly steeper as yields fella touch at the short end and rose a touch at the long end. By the end of the week, the 3-year/10-year spread had added 2bps to 44bps while the 20 year spread finished 1bp higher at 83bps.
The gradient of the US Treasury curve generally became more negative/less positive. The 2-year/10-year spread lost 2bps to -11bps while the 2 year/30 year spread declined by 5bps to +17bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 10bps higher at -127bps.
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