Summary: Slope of ACGB curve a touch flatter; US Treasury curve gradient steepens.
The gradient of the ACGB yield curve became a touch flatter as yields fell again. By the end of the week, the 3-year/10-year spread had lost 2bps to 42bps while the 20-year spread had slipped 1bp to 76bps.
The gradient of the US Treasury curve steepened modestly. The 2-year/10-year spread widened by 4bpa to +6bps while the 2-year/30-year spread added 2bps to +23bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 9bps higher at -23bps.
To find out more about the yield curve and its usefulness, click here or here.