Summary: Slope of ACGB curve steeper; US Treasury curve gradient generally more negative.
The gradient of the ACGB yield curve became steeper for a third consecutive week as yields rose. By the end of the week, the 3-year/10-year spread had gained 4bps to 47bps while the 3/20 year spread finished 1bp higher at 76bps.
The gradient of the US Treasury curve generally became more negative this week. The 2-year/10-year spread lost 5bps to -24bps while the 2 year/30 year spread finished 9bps lower at -4bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 19bps higher at -122bps.
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