Australian Data and RBA in Focus

• Geopolitical tensions cooled modestly overnight after President Trump confirmed a proposed military strike on Iran had been shelved, following requests from Gulf allies to allow further diplomatic discussions to take place.

• Even with the softer rhetoric, bond markets remain uneasy. Energy prices are still elevated and inflation concerns continue to keep global yields hovering around multi-year highs.

• In rates markets, the US 10-year Treasury yield eased 1bp to 4.59%, while locally the Australian 10-year futures yield declined 9bps to 5.07%.

• Domestically, attention turns to a busy calendar today, headlined by the release of the Minutes from the May RBA Board meeting, alongside the latest Westpac consumer confidence data.

• Also on the calendar this morning, RBA Assistant Governor Sarah Hunter speaks at a Bloomberg forum titled “The Bank’s assessment of recent inflation outcomes, the underlying dynamics, and the outlook from here” – comments likely to be watched closely by rates markets.