Summary: ACGB gradient flatter; US Treasury curve gradient also flatter.
The gradient of the ACGB yield curve flattened a little as yields increased noticeably along it. By the end of the week, the 3-year/10-year spread had narrowed by 2bps to 89bps and the 3-year/20-year spread had shed 4bps to 148bps.
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The gradient of the US Treasury curve changed but not in a consistent manner. The 2-year/10-year spread returned to its starting point at 118bps while the 2 year/30 year spread shed 3bps to 162bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 5bps wider at 158bps.
To find out more about the yield curve and its usefulness, click here or here.
*December futures