Markets Await Aussie Jobs Data

• The key headline overnight came from US Treasury Secretary Bessent, calling for a 50bp Fed cut in September.
• Market pricing now implies a small but increasing chance of a move larger than 25bp, with September OIS at 26.7bps (up from 24.1bps on Tuesday).
• US government bond yields fell on the news, with the 10-year down 6bp to 4.23% and the 2-year down 5bp to 3.68%.
• Locally, yesterday’s Wage Price Index rose 0.8% q/q and 3.4% y/y, broadly matching market expectations and RBA forecasts.
• Today’s focus is on Australia’s employment data, with consensus for a ~25k lift in jobs and a 0.1ppt drop in the unemployment rate to 4.2%.