Summary: Slope of ACGB curve steeper again; US Treasury curve gradient generally less negative.
The gradient of the ACGB yield curve became steeper for a fourth consecutive week as yields fell. By the end of the week, the 3-year/10-year spread had gained 3bps to 50bps while the 3/20 year spread finished 7bps higher at 83bps.
The gradient of the US Treasury curve generally became less negative this week. The 2-year/10-year spread gained 5bps to -19bps while the 2 year/30 year spread finished 8bps higher at +4bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 1bps higher at -121bps.
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