Markets Brace for Key Central Bank Decisions Amid Soft US Data

• US data late last week showed consumer confidence slipping again. The University of Michigan index fell to 55.4 in September from 58.2 in August (survey: 58.0), its weakest since May and a reminder households remain cautious.
• Treasury yields moved higher Friday despite the softer sentiment backdrop. The 10-year rose 6bp to 4.07%, while the 2-year gained 3bp to 3.56%, as markets continued weighing the policy easing outlook.
• Focus now shifts to a busy week of central bank meetings. The Fed is widely expected to cut rates, with the Bank of Canada likely to follow, while the Bank of Japan and Bank of England are expected to hold steady.
• At home, Thursday’s labour force survey will be closely watched, with the unemployment print likely to shape expectations around the RBA’s easing path.