Summary: Slope of ACGB curve steepens; US Treasury curve gradient more positive/less negative.
The gradient of the ACGB yield curve became a little steeper as yields increased. By the end of the week, the 3-year/10-year spread had ticked up 1bp to 53bps while the 20 year spread finished 5bps higher at 96bps.
The gradient of the US Treasury curve also became more positive/less negative. The 2-year/10-year spread gained 6bps to +19bps while the 2 year/30 year spread increased by 6bps to +54bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 8bps higher at -84bps.
To find out more about the yield curve and its usefulness, click here or here.