Summary: Slope of ACGB curve flatter; US Treasury curve gradient generally more negative.
The gradient of the ACGB yield curve became a little more flatter as yields rose. By the end of the week, the 3-year/10-year spread had lost 2bps to 44bps while the 3/20 year spread also finished 2bps lower at 74bps.
The gradient of the US Treasury curve generally became more negative this week. The 2-year/10-year spread lost 4bps to -35bps while the 2 year/30 year spread finished 9bps lower at -20bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 13bps higher at -108bps.
To find out more about the yield curve and its usefulness, click here or here.