**As seen in Macro Walk report 12/16/22, subscribe at cablefxm.co.uk/reports
The spread between the Bund and the Treasury curve narrows as the week saw the former rise by more than 20 basis points across tenors, the 5-year Bund yield jumped by 27.83 basis points on the week. U.S. Treasury yields dipped, the 5-year yield fell by 14.44bps, the 2-year yield declined by 16.60bps
This left the Bund-Treasury 2-y yield spread at 177 basis points, favouring Treasuries. The move was recorded as both ECB and Fed met for the last time this year, both central banks lifted policy rates by 50bps and set expectations for next year. The Fed's peak rate is seen reached by May
On the month, the U.S. Treasury curve is bid as yields decline by around 20bps. The Canadian and Australian sovereign curves join the U.S. as yields fall over the last month, the rest of our tracking list sees rates offered.
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