Summary: Slope of ACGB curve slightly flatter; US Treasury curve gradient flatter/more negative.
The gradient of the ACGB yield curve again became a little flatter as yields increased. By the end of the week, the 3-year/10-year spread had returned to its starting point at 50bps while the 20 year spread finished 2bps lower at 88bps.
The gradient of the US Treasury curve became flatter/more negative. The 2-year/10-year spread lost 2bps to +12bps while the 2 year/30 year spread slipped 1bp to +44bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 2bps lower at -55bps.
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