RBA Meet Tomorrow

• Moody’s downgraded the US sovereign credit rating to Aa1 from Aaa, citing concerns over rising government debt — aligning with S&P and Fitch, and sparking a mild sell-off in US Treasuries.
• The US 10-year Treasury yield rose 4bps to 4.48%, reversing some of last week’s gains as investors reassessed the long-term fiscal outlook.
• US consumer sentiment deteriorated further, with the University of Michigan index falling to 50.8 in May (vs. 53.4 expected), alongside a lift in inflation expectations.
• In Australia, the RBA meet on Tuesday, with a 25bp rate cut widely expected; the accompanying Statement on Monetary Policy will provide updated forecasts and context for the decision.