Summary: Slope of ACGB curve almost unchanged; US Treasury curve gradient more negative/less positive.
The gradient of the ACGB yield curve remained almost unchanged as yields slipped a little. By the end of the week, the 3-year/10-year spread had returned to its starting point at 40bps while the 20 year spread finished 1bp higher at 79bps.
The gradient of the US Treasury curve became less negative/more positive. The 2-year/10-year spread gained 10bps to -1bp while the 2 year/30 year spread increased by 10bps to +28bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 14bps higher at -119bps.
To find out more about the yield curve and its usefulness, click here or here.