US Data Disappoints as Month-End Flows Stay Firm

• US bond yields fell after a strong 7-year note auction and softer economic data. The 10-year dropped 6bps to 4.42%, and the 2-year declined 5bps to 3.94%.]
• US Q1 GDP was revised to -0.2% from -0.3%, but the details were weak. Consumer spending growth was cut to 1.2% (slowest since Q2 2023), and Q1 profits fell 2.9% q/q — suggesting soft domestic demand ahead of April tariff increases.
• Legal and political uncertainty lingers after a court ruling delay and reports of Trump urging Fed Chair Powell to cut rates.
• Focus now turns to April retail sales (Friday). A stronger-than-expected result (forecast: +0.5%) could shape short-end yields and influence RBA expectations ahead of July.