Summary: Slope of ACGB curve slightly steeper; US Treasury curve gradient generally less negative.
The gradient of the ACGB yield curve became slightly steeper as yields generally slipped. By the end of the week, the 3-year/10-year spread had added 1bp to 46bps while the 3/20 year spread finished 2bps higher at 75bps.
The gradient of the US Treasury curve generally became less negative this week. The 2-year/10-year spread added 1bp to -37bps and the 2 year/30 year spread finished unchanged at -28bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 7bps higher at -77bps.
To find out more about the yield curve and its usefulness, click here or here.