Summary: Australian Commonwealth Government bond yield curve stable; US Treasury curve gradient flatter.
The gradient of the ACGB yield curve remained unchanged as various yields returned to their respective starting points. By the end of the week, the 3-year/10-year spread was 141bps while the 3-year/20-year spread was 211bps.
The gradient of the US Treasury curve became flatter. The 2-year/10-year spread tightened by 5bps to 140bps while the 2 year/30 year spread also declined by 5bps to 208bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 4bps tighter at 153bps.
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