US Trade Policy Impact Still Muted

• US bond yields eased 4–8bps, led by the long end, after a strong 30-year auction calmed concerns over investor demand for long-term US debt.
• The May PPI report was broadly benign, suggesting recent US trade policies have yet to materially impact domestic prices.
• Producer prices rose 0.1% in May (vs. +0.2% expected), with the annual PPI rate ticking up to 2.6% (from 2.5%), in line with forecasts.
• In Australia, CommBank’s HSI showed household spending rose 0.5% in May, lifting the annual pace to 5.2%. While monthly momentum improved, overall spending remains softer than expected for 2025.