Summary: Australian gradient a touch steeper; US Treasury curve also steeper.
The gradient of the ACGB yield curve steepened a touch as yields rose fairly evenly along it. By the end of the week, the 3-year/10-year spread had widened by 2bps to 88bps and the 3-year/20-year spread had increased by 1bp to 151bps.
The gradient of the US Treasury curve also became steeper as yields at the long end increased. The 2-year/10-year spread gained 4bps to 108bps and the 2 year/30 year spread added 4bps to 168bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 5bps wider at 126bps.
To find out more about the yield curve and its usefulness, click here or here.