Summary: Slope of ACGB curve slightly flatter; US Treasury curve gradient generally less negative.
The gradient of the ACGB yield curve became a little flatter as yields rose. By the end of the week, the 3-year/10-year spread had slipped 1bp to 46bps while the 3/20 year spread finished 3bps lower at 76bps.
The gradient of the US Treasury curve generally became less negative this week. The 2-year/10-year spread added 3bps to -31bps while the 2 year/30 year spread also finished 3bps lower at -11bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 13bps higher at -121bps.
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