Long End Under Pressure

• The global selloff in bonds continues, with the US 30yr above 5.30% and yields at 19 year highs, the move reflecting concerns over inflationary pressure from higher energy prices, the frequency of supply shocks in the current geopolitical climate, and the sustainability of public finances in major economies.
• Global oil prices remain elevated above US$90/bbl. as Iran signalled it would adopt a more offensive stance and that the Strait of Hormuz would remain closed, while President Trump insisted no talks with Iran were under way.
• Westpac consumer confidence rose 6% yesterday, though the improvement came off a low base and the overall read remains pessimistic, sitting below the levels seen last year.
• Looking ahead, the wage price index is due today, with the annual rate expected at 3.2%, while RBA Deputy Governor Hauser speaks at a summit in Brisbane.