Summary: Slope of ACGB curve steeper; US Treasury curve gradient generally less inverted.
The gradient of the ACGB yield curve became steeper as yields fell. By the end of the week, the 3-year/10-year spread had gained 6bps to 42bps while the 3/20 year spread finished 10bps higher at 72bps.
The gradient of the US Treasury curve generally became less inverted this week. The 2-year/10-year spread gained 14bps to -34bps while the 2 year/30 year spread finished 20bps higher at -15bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 23bps lower at -117bps.
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