Summary: Slope of ACGB curve a little steeper; US Treasury curve gradient generally more inverted.
The gradient of the ACGB yield curve became a little steeper as yields rose. By the end of the week, the 3-year/10-year spread had added 2bps to 30bps while the 3/20 year spread also finished 2bps higher at 65bps.
* September futures
The gradient of the US Treasury curve generally became more inverted this week. The 2-year/10-year spread slipped 1bp to -70bps while the 2 year/30 year spread finished 6bps lower at -73bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 6bp higher at -119bps.
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