Summary: Slope of ACGB curve flatter; US Treasury curve gradient generally 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 lost 5bps to 49bps while the 3/20 year spread finished 7bps lower at 82bps.
The gradient of the US Treasury curve generally became more inverted this week. The 2-year/10-year spread slipped 1bp to -19bps while the 2 year/30 year spread finished 1bp higher at -1bp. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 9bps lower at -61bps.
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