Summary: Slope of ACGB curve generally flatter; US Treasury curve gradient more positive/less negative.
The gradient of the ACGB yield curve became again slightly flatter in general as yields declined. 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 3bps lower at 80bps.
The gradient of the US Treasury curve became more positive/less negative. The 2-year/10-year spread added 1bp to +7bps while the 2 year/30 year spread increased by 3bps to +40bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 11bps higher at -123bps.
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