Markets Continue

• Investor sentiment remains cautious as uncertainty lingers over the US and China trade outlook. After a strong run in markets recently, participants appear to be pausing ahead of upcoming data.
• US government bonds firmed overnight, with the 10 year Treasury yield easing slightly to 3.95%. Longer dated yields held near their lowest levels since April, supported by strong demand at the latest 20 year auction.
• The focus now shifts to the US CPI release tomorrow night at 11:30pm Sydney time, which will go ahead despite the ongoing government shutdown.
• Locally, the week remains quiet in terms of data, but next week’s Q3 CPI print and the RBA policy meeting on November 4 are expected to drive activity and shape the near term market outlook.