Summary: Slope of ACGB curve unchanged; US Treasury curve gradient flatter/more negative.
The gradient of the ACGB yield curve remained unchanged after three consecutive weeks of flattening as yields fell back. By the end of the week, the 3-year/10-year spread had returned to its starting point at 48bps as did the 20 year spread at 77bps.
The gradient of the US Treasury curve became flatter/more negative. 2-year/10-year and 2-year/30-year spreads both lost 9bps to +3bps and +21bps respectively. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 5bps lower at -12bps.
To find out more about the yield curve and its usefulness, click here or here.