Summary: ACGB gradient slightly flatter; US Treasury curve gradient also flatter, more considerably.
The gradient of the ACGB yield curve became slightly flatter as yields rose across the curve. By the end of the week, the 3-year/10-year spread had tightened by 3bps to 50bps and the 3-year/20-year spread had lost 6bps to 95bps.
The gradient of the US Treasury curve also became flatter but more considerably. The 2-year/10-year spread fell 17bps to 43bps over the week while the 2 year/30 year spread lost 16bps to 74bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 10bps lower at 158bps.
