Summary: Slope of ACGB curve generally flatter; US Treasury curve gradient more positive.
The gradient of the ACGB yield curve became slightly flatter in general as yields declined. By the end of the week, the 3-year/10-year spread had lost 3bps to 40bps while the 20 year spread finished 1bp higher at 83bps.
The gradient of the US Treasury curve generally became more positive. The 2-year/10-year spread gained 7bps to +6bps while the 2 year/30 year spread increased by 9bps to +37bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 15bps lower at -134bps.
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