Summary: Slope of ACGB curve steepens slightly; US Treasury curve gradient generally more negative.
The gradient of the ACGB yield curve became slightly steeper as yields fell. By the end of the week, the 3-year/10-year spread had added 1bp to 32bps while the 20 year spread finished 3bps higher at 67bps.
The gradient of the US Treasury curve generally became more negative this week. The 2-year/10-year spread slipped 1bp to -28bps, as did the 2 year/30 year spread to -7bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 6bps higher at -109bps.
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