Summary: Australian gradient steeper; US Treasury curve gradient changes again inconsistent.
The gradient of the ACGB yield curve steepened as yields declined a touch at the short end and rose moderately at the long end. By the end of the week, the 3-year/10-year spread had widened by 10bps to 95bps* and the 3-year/20-year spread had increased by 11bps to 157bps*.
The gradient of the US Treasury curve again changed in an inconsistent fashion as yields moved in a haphazard manner along the curve. The 2-year/10-year spread added 3bps to 115bps while the 2 year/30 year spread shed 3bps to 169bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 3bps wider at 133bps.
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*December futures