Yields Ease and Confidence Lifts

• US Treasury yields eased, with the 10-year falling 7bps to 4.44% and the 30-year briefly dipping below 5%. The move came as concerns over rising global government debt supply eased.
• Expectations that Japan may scale back long-dated bond issuance added further support to long-end yields globally, helping reverse some of last week’s upward pressure.
• US consumer confidence jumped sharply, with the Conference Board index rising 12.3 points to 98.0 in May — the biggest monthly increase in four years — boosting risk appetite across markets.
• Trade tensions softened, as the US and EU agreed to work toward a trade deal within six weeks, easing fears of near-term tariffs.
• Locally, focus turns to April CPI, with consensus expecting a slight moderation to 2.3% y/y from 2.4% in March — a key input ahead of the RBA’s July meeting.