Summary: ACGB curve slightly steeper; US Treasury curve mostly slightly steeper.
The gradient of the ACGB yield curve became slightly steeper as yields dropped materially. By the end of the week, the 3-year/10-year spread had gained 3bps to 32bps while the 3-year/20-year spread slipped 1bps to 49bps.
The various measures of the gradient of the US Treasury curve mostly finished the week slightly steeper. The 2-year/10-year spread widened by 1bp to 6bps while the 2 year/30 year spread gained 10bps to 19bps over the week. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 16bps narrower at 147bps.
