Summary: Slope of ACGB curve flatter; US Treasury curve gradient generally more inverted.
The gradient of the ACGB yield curve became slightly flatter as yields fell. By the end of the week, the 3-year/10-year spread had lost 3bps to 39bps while the 3/20 year spread finished 2bps lower at 70bps.
The gradient of the US Treasury curve generally became more inverted this week. The 2-year/10-year spread lost 15bps to -49bps while the 2 year/30 year spread finished 26bps lower at -41bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 3bps higher at -114bps.
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