- Australia’s goods trade surplus narrowed from $1.4bn to $0.5bn in August, driven by another surge in imports of data centre-related equipment.
- National home prices fell 1.1% in September, a sixth consecutive monthly decline that leaves them 5.2% below their March peak, as higher rates, tighter financing and weaker sentiment weigh on demand. Even so, the RBA’s Financial Stability Report found the domestic financial system resilient, with most mortgage holders managing higher costs well and negative equity low at around 1%.
- Fed officials struck a cautious tone overnight, with Vice Chair Jefferson playing down the risk of a back-to-back hike and stressing a data-dependent approach. Markets have slashed the probability of an October move from around 70% at the start of the week to 30%.
- This, alongside softer manufacturing data, pulled Treasury yields lower in a very volatile session, with the 10yr twice reaching 5.34% before closing 4.6bps lower at 5.24%, while the 2yr fell 9.6bps to 4.79%. US non-farm payrolls are due tonight.
