Hot US CPI Keeps Yields Moving Higher
- US bond markets were closed for Veterans Day, but Treasury futures continued to point to higher yields after this week’s hotter CPI and more hawkish Fed commentary. The 2-year has risen around 20bps since the CPI print, keeping December tightening expectations firmly in focus.
- Oil edged higher as US-Iran de-escalation hopes faded, with Brent around US$93/bbl. Talks remain stalled and renewed attacks in the Strait of Hormuz are keeping supply risks in the background.
- Australian housing lending weakened sharply in Q3, with total new loan values down a record 15.5% q/q and investor lending falling 32.3%. The slowdown points to higher rates gaining traction through housing activity, an important consideration for the RBA as it balances inflation against softer demand.
- Australian inflation expectations and US jobless claims are the key releases today. Melbourne Institute inflation expectations rose to 5.3% in October from 4.9%, while several Fed speakers, including New York Fed President John Williams, will also be closely watched.
