Focus Turns to June Labour Data

• Concerns over Fed independence resurfaced overnight, with initial reports suggesting President Trump might fire Fed Chair Powell. He later clarified he wouldn’t do so unless there was ‘fraud’.
• US producer prices were unchanged in June, coming in slightly softer than expected. There’s still no evidence of goods inflation spilling into services—service prices fell 0.1% m/m and are unchanged over the past three months.
• With inflation pressures subdued, US government bond yields moved lower—10-year Treasury yields fell 3bps to 4.46%.
• Locally, the June labour force data is due today. The market expects the unemployment rate to hold at 4.1%, with a 20k lift in employment.