Yields Ease as Uncertainty Builds

• U.S. 10-year Treasury yields fell 8.2bps to 4.38% after Fed officials downplayed tariff-driven inflation, reinforcing expectations for policy easing.
• Fed Governor Waller called recent tariffs one of the largest shocks in decades, adding uncertainty to the inflation and policy outlook. Trump also flagged potential temporary auto tariff exemptions.
• Markets continue to price in U.S. easing despite near-term inflation risks. Locally, this supports the case for RBA cuts, with futures still implying a dovish bias through year-end.
• Today the RBA will release Minutes from its April policy meeting, with markets looking for any shift in tone as rate cut expectations build.