Summary: Slope of ACGB curve steeper; US Treasury curve gradient generally less negative.
The gradient of the ACGB yield curve became steeper as yields fell. By the end of the week, the 3-year/10-year spread had added 3bps to 43bps while the 3/20 year spread finished 4bps higher at 74bps.
The gradient of the US Treasury curve generally became less negative this week. The 2-year/10-year spread added 2bps to -39bps and the 2 year/30 year spread finished 9bps higher at -21bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 10bps lower at -116bps.
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