Eyes on US PCE Print Tonight

• Overnight, solid US growth was confirmed, though traders held back ahead of tonight’s PCE inflation data, which could give more clarity on the path of Fed rate cuts.
• US GDP expanded at a 3.3% annualised pace in Q2, with bonds showing a mixed response and longer-term yields leading the move lower.
• The US 10-year Treasury yield eased 3bps to 4.21%, while the 2-year ticked up 1bp to 3.63%.
• In Australia, June quarter capex edged up 0.2%, reversing the prior quarter’s decline but still signalling subdued investment.
• Looking ahead, the key focus will be tonight’s US PCE inflation print, which remains the Fed’s preferred measure of inflation.