Summary: Slope of ACGB curve steeper; US Treasury curve gradient less inverted.
The gradient of the ACGB yield curve became steeper as yields rose again. By the end of the week, the 3-year/10-year spread had added 9bps to 41bps while the 3/20 year spread finished 10bps higher at 73bps.
The gradient of the US Treasury curve became less inverted again this week. The 2-year/10-year spread increased by 18bps to -47bps and the 2 year/30 year spread finished 21bps higher at -35bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 16bps higher at -88bps.
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