Yields Jump as Trade Truce Lifts Risk Sentiment

• The US and China agreed to sharply reduce tariffs for 90 days while broader trade negotiations continue. US levies drop to 30% (from 145%) and China’s to 10% (from 125%).
• Bond yields surged globally, with the US 10-year Treasury yield rising 9bps to 4.47% – the highest in a month – as investors rotated out of safe havens and into risk assets.
• Markets have now priced in just 55bps of Fed rate cuts for 2025, down from ~100bps earlier this month, as growth concerns ease and risk appetite improves.
• Attention turns to the US April CPI tonight, though the renewed trade optimism may reduce its immediate market impact.
• Locally, NAB’s April Business Survey and Westpac’s May Consumer Confidence will offer insight into domestic conditions.