Fed Hawkishness Lifts Global Yields

• Hawkish Fed commentary pushed longer-dated Treasuries lower, with yields drifting higher across the curve. The US 10-year Treasury now trades around 4.19%.

• At the recent FOMC meeting, Chicago Fed President Austan Goolsbee dissented, calling for more data before a cut, while Kansas City Fed’s Jeffrey Schmid opposed the move due to persistent inflation pressures.

• This pattern was mirrored globally, with 10-year European government bonds edging 1–3bps higher. Australian government bond futures also saw modest gains.

• Domestically, the 3-year yield lifted from 4.14%, with the 10-year holding around 4.74–4.76%. Markets now price in roughly two rate hikes by end-2026.

• Key releases this week include Westpac-MI consumer sentiment, alongside speeches from RBA officials Jones and Brischetto, which could guide market expectations further.