Summary: Australian 3/10 year gradient steeper, 3/20 year gradient flatter; US Treasury curve flatter.
The gradient of the ACGB yield curve again acted in a somewhat inconsistent manner this week. By the end of it, the 3-year/10-year spread had widened by 2bps to 90bps while the 3-year/20-year spread had tightened by 1bps to 153bps.
The gradient of the US Treasury curve became unambiguously flatter. The 2-year/10-year spread lost 3bps to 104bps while the 2 year/30 year spread slipped 1bp to 171bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 5bps tighter at 123bps.
