Summary: Slope of ACGB curve flatter; US Treasury curve gradient steeper/less negative.
The gradient of the ACGB yield curve became flatter for a third consecutive week as yields increased again. By the end of the week, the 3-year/10-year spread had lost 3bps to 48bps while the 20 year spread finished 6bps lower at 77bps.
The gradient of the US Treasury curve generally became steeper/less negative. The 2-year/10-year spread gained 7bps to +12bps while the 2 year/30 year spread added 8bps to +30bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 16bps higher at -7bps.
To find out more about the yield curve and its usefulness, click here or here.