Summary: Slope of ACGB curve a touch steeper; US Treasury curve gradient more negative.
The gradient of the ACGB yield curve became a touch steeper as yields fell. By the end of the week, the 3-year/10-year spread had added 1bp to 40bps while the 3/20 year spread finished 1bp higher at 71bps.
The gradient of the US Treasury curve became more negative this week. The 2-year/10-year spread lost 3bps to -52bps while the 2 year/30 year spread finished 1bp lower at -42bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 33bps lower at -147bps.
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