Summary: Slope of ACGB curve slightly flatter; US Treasury curve gradient generally more negative.
The gradient of the ACGB yield curve became slightly flatter as yields rose. By the end of the week, the 3-year/10-year spread had slipped 1bp to 45bps while the 3/20 year spread finished 4bps lower at 73bps.
The gradient of the US Treasury curve generally became more negative this week. The 2-year/10-year spread lost 3bps to -38bps and the 2 year/30 year spread finished 8bps lower at -28bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 11bps higher at -84bps.
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