Summary: Slope of ACGB curve flattens; US Treasury curve gradient largely unchanged.
The gradient of the ACGB yield curve generally became flatter as yields fell again. By the end of the week, the 3-year/10-year spread had lost 4bps at 44bps while the 20-year spread returned to its starting point at 77bps.
The gradient of the US Treasury curve remained largely unchanged. The 2-year/10-year spread tightened by 1bp to +2bps while the 2-year/30-year spread returned to its starting point at +21bps. However, the San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 20bps lower at -32bps.
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