Summary: Slope of ACGB curve flatter; US Treasury curve gradient slightly more inverted.
The gradient of the ACGB yield curve became flatter as yields rose. By the end of the week, the 3-year/10-year spread had shed 2bps to 36bps while the 3/20 year spread finished 8bps lower at 62bps.
The gradient of the US Treasury curve became slightly more inverted again this week. The 2-year/10-year spread lost 2bps to -48bps while the 2 year/30 year spread finished 4bps lower at -35bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 1bp lower at -94bps.
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