Summary: Slope of ACGB curve steeper again; US Treasury curve gradient less inverted.
The gradient of the ACGB yield curve became steeper for a third consecutive week as yields rose again. By the end of the week, the 3-year/10-year spread had gained 14bps to 55bps while the 3/20 year spread finished 14bps higher at 87bps.
The gradient of the US Treasury curve became less inverted again this week. The 2-year/10-year spread increased by 19bps to -28bps and the 2 year/30 year spread finished 24bps higher at -11bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 18bps higher at -70bps.
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