Yields Lower as Eyes Turn to Powell

• A quiet overnight session saw bond yields ease across the curve, with no major data releases or surprises from U.S. Treasury auctions; the 10-year yield fell 4bps to 4.30%, while the 2-year dipped 6bps to 3.78%.
• Risk sentiment remains cautious ahead of tomorrow morning’s FOMC decision, with markets watching for any shift in tone amid ongoing trade and tariff uncertainty.
• The Fed is widely expected to hold rates steady, with Chair Powell likely to downplay soft Q1 GDP while highlighting resilient private demand, a strong labour market, and lingering services inflation.
• Locally, the Monthly Household Spending Indicator showed flat spending in Q1, raising the risk that the RBA’s expected rebound in consumption may take longer to materialise.