Cautious Tone in Bonds Ahead of RBA Testimony

• Despite a heavy slate of central bank meetings last week, bond markets were broadly restrained, though benchmark yields edged higher into the close.
• The US 10yr Treasury added 3bp to 4.13%, marking its first weekly rise in five, while the 2yr lifted 1bp to 3.57%, highlighting investor hesitation to fully commit to the Fed’s dovish shift.
• At home, RBA Governor Michele Bullock testifies today before the House Economics Committee. Any nuance in her comments could guide how the Bank communicates its easing path heading into year-end.
• Midweek, the August CPI indicator will be in focus, with consensus for it to hold steady at 2.8% y/y. That aligns with a 0.7% q/q outcome for Q3 core inflation, reinforcing the case for gradual, measured easing rather than sharper moves.