Summary: Australian Commonwealth Government bond yield curve steeper; US Treasury curve gradient also steeper.
The gradient of the ACGB yield curve became steeper as longer-term yields rose. By the end of the week, the 3-year/10-year spread had widened by 11bps to 149bps while the 3-year/20-year spread had gained 9bps to 220bps.
The gradient of the US Treasury curve also became steeper. The 2-year/10-year spread widened by 5bps to 148bps while the 2 year/30 year spread increased by 7bps to 220bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 6bps wider at 162bps.
