Summary: Slope of ACGB curve a little steeper; US Treasury curve gradient less negative.
The gradient of the ACGB yield curve became a little steeper as yields rose. By the end of the week, the 3-year/10-year spread had gained 3bps to 37bps while the 3/20 year spread finished 2bps higher at 66bps.
The gradient of the US Treasury curve became less negative this week. The 2-year/10-year spread increased by 10bps to -38bps and the 2 year/30 year spread finished 15bps higher at -23bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 3bps higher at -88bps.
To find out more about the yield curve and its usefulness, click here or here.