Summary: Slope of ACGB curve a little flatter; US Treasury curve gradient generally less inverted.
The gradient of the ACGB yield curve became a little flatter as yields rose. By the end of the week, the 3-year/10-year spread had returned to its starting point at 30bps* while the 3/20 year spread finished 2bps lower at 63bps*.
* December futures
The gradient of the US Treasury curve generally became less inverted this week. The 2-year/10-year spread returned to its starting point at -70bps while the 2 year/30 year spread finished 2bps higher at -61bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 5bps higher at -114bps.
To find out more about the yield curve and its usefulness, click here or here.