- FOMC minutes kept another hike in play, with most participants expecting further tightening by year-end and several viewing policy as only mildly restrictive. The September move was framed more as insurance against sticky inflation than the start of a sustained hiking cycle.
- NY Fed one-year inflation expectations jumped to 3.9% from 3.6%, the highest since May 2023. Longer-term expectations were steadier, keeping the focus on near-term energy-driven inflation risks.
- US Treasuries remained under pressure, with the 10-year briefly reaching 5.36% before a strong auction pulled yields back towards 5.28%. Elevated oil prices continue to keep pressure on the long end.
- Australia’s construction pipeline remains strong, with data centre projects under construction rising 20.1% q/q and nearly quadrupling over the year. Elevated activity should continue to support domestic demand and GDP.
- Ahead today: Melbourne Institute inflation expectations, after 4.9% in September, US jobless claims and Fed Governor Waller, with markets watching for further rates guidance.
