Tariffs Brushed Aside by Markets

• Markets shrugged off President Trump’s weekend threat of 30% tariffs on the EU and Mexico.
• Yields edged slightly higher overnight, with the 10-year UST at 4.43%, trading in a narrow 4.40%–4.44% range. The short end remains anchored by expectations of two Fed cuts this year, as markets continue to price in a Trump-aligned, more dovish Fed chair in 2026.
• In Australia, consumer confidence data is released today via the Westpac–Melbourne Institute Consumer Sentiment measure.
• Expect commentary to reflect pre- and post-RBA talking points, with recent reports showing headline confidence has remained effectively flat since December.
• US CPI for June will also be in focus. May data showed only mild inflation in some consumer durables, as retailers continued drawing down pre-tariff inventories ahead of potential price adjustments.