Summary: Slope of ACGB curve flatter; US Treasury curve gradient generally more inverted.
The gradient of the ACGB yield curve became flatter for a third consecutive week as yields fell. By the end of the week, the 3-year/10-year spread had lost 6bps to 38bps while the 3/20 year spread finished 5bps lower at 69bps.
The gradient of the US Treasury curve generally became more inverted again this week. The 2-year/10-year spread lost 6bps to -41bps while the 2 year/30 year spread also finished 12bps lower at -29bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 15bps higher at -73bps.
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