Aussie Labour Market Outperforms, Unemployment Unchanged

• April labour force data showed unemployment steady at 4.1%, in line with expectations, while employment surged by 89k — well above consensus.
• A lift in the participation rate to 67.1% offset what would have been a decline in the unemployment rate. Trend employment continues to track population growth.
• Markets trimmed RBA rate cut pricing to 49bps by year-end, down from 53bps pre-release.
• US data surprised to the downside, with April PPI falling 0.5% (vs. +0.2% expected) and core PPI easing to 3.1% y/y. Retail sales rose just 0.1% (vs. flat expected).
• US 10-year Treasury yields fell 10bps to 4.40%, as softer data modestly shifted expectations toward future Fed policy easing.