Summary: Gradient of ACGB curve steepens slightly; US Treasury curve gradient barely moves.
The gradient of the ACGB yield curve became slightly steeper as yields declined. By the end of the week, the 3-year/10-year spread had gained 3bps to 61bps while the 20-year spread added 1bp to 102bps.
Movements of the gradient of the US Treasury curve were haphazard. The 2-year/10-year spread tightened by 5bps to +34bps while the 2-year/30-year spread added 2bps to +58bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 13bps lower at +32bps.
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