Summary: Slope of ACGB curve steeper; US Treasury curve gradient less negative.
The gradient of the ACGB yield curve became steeper as yields rose. By the end of the week, the 3-year/10-year spread had added 3bps to 46bps while the 3/20 year spread finished 6bps higher at 77bps.
The gradient of the US Treasury curve became less negative this week. The 2-year/10-year spread gained 7bps to –35bps and the 2 year/30 year spread finished 8bps higher at –20bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 20bps higher at –95bps.
To find out more about the yield curve and its usefulness, click here or here.