Summary: Slope of ACGB curve generally steeper; US Treasury curve gradient generally steeper/less negative.
The gradient of the ACGB yield curve generally became steeper as yields increased. By the end of the week, the 3-year/10-year spread had gained 3bps to 53bps while the 20 year spread finished unchanged at 88bps.
The gradient of the US Treasury curve generally became steeper/less negative. The 2-year/10-year spread added 1bp to +13bps while the 2 year/30 year spread lost 5bps to +39bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 17bps higher at -38bps.
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