Tariff Tensions Stay Contained

• It was a quiet night for data and headlines, and markets moved accordingly. A fresh batch of US tariff letters avoided major trading partners, keeping risk sentiment stable.
• US government bond yields fell after a well-received $US39 billion 10-year note auction. The US 10-year Treasury yield dropped 8bps to 4.33%.
• RBA Deputy Governor Hauser said in a speech yesterday that the first-round impacts of US tariffs on Australia are “probably relatively minor.”
• Looking Ahead: Locally, the CBA Household Spending Indicator is due. In the US, initial and continuing jobless claims will be in focus.