Summary: ACGB gradient steeper; US Treasury curve gradient also steeper.
The gradient of the ACGB yield curve steepened as yields increased. By the end of the week, the 3-year/10-year spread had widened by 4bps to 99bps and the 3-year/20-year spread had increased by 5bps to 162bps.
The gradient of the US Treasury curve also steepened. The 2-year/10-year spread added 3bps to 118bps while the 2 year/30 year spread gained 2bps to 171bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 9bps wider at 142bps.
To find out more about the yield curve and its usefulness, click here or here.
*December futures