Summary: Slope of ACGB curve generally flatter; US Treasury curve gradient generally less negative.
The gradient of the ACGB yield curve generally became flatter as yields fell. By the end of the week, the 3-year/10-year spread had declined 1bp to 40bps while the 3/20 year spread finished 3bps higher at 70bps.
The gradient of the US Treasury curve generally became less negative this week. The 2-year/10-year spread added 2bps to -31bps and the 2 year/30 year spread finished 7bps higher at -15bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 14bps lower at -86bps.
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