Summary: Slope of ACGB curve modestly steeper; US Treasury curve gradient less inverted.
The gradient of the ACGB yield curve became modestly steeper as yields rose. By the end of the week, the 3-year/10-year spread had added 2bps to 32bps while the 3/20 year spread finished unchanged at 63bps.
The gradient of the US Treasury curve became less inverted this week. The 2-year/10-year spread increased by 5bps to -65bps and the 2 year/30 year spread also finished 5bps higher at -56bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 10bps higher at -104bps.
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