Summary: Slope of ACGB curve slightly steeper; US Treasury curve gradient generally more negative.
The gradient of the ACGB yield curve became slightly steeper as yields increased. By the end of the week, the 3-year/10-year spread had added 1bp to 40bps while the 3/20 year spread finished unchanged at 70bps.
The gradient of the US Treasury curve generally became more negative this week. The 2-year/10-year spread slipped 1bp to -41bps and the 2 year/30 year spread finished 8bps lower at -30bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 23bps higher at -106bps.
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