Summary: Gradient of ACGB curve steepens; US Treasury curve gradient steepens.
The gradient of the ACGB yield curve became steeper as yields rose moderately. By the end of the week, the 3-year/10-year spread had gained 3bps to 45bps while the 20-year spread added 5bps to 81bps.
The gradient of the US Treasury curve also steepened, with all of the various measures back in positive territory. The 2-year/10-year spread widened by 9bps to +15bps while the 2-year/30-year spread added 13bps to +36bps. The San Francisco Fed’s favoured recession-predicting measure, the 3-month/10-year Treasury spread, finished 30bps higher at +13bps.
To find out more about the yield curve and its usefulness, click here or here.