Markets Steady Post-PCE; Focus Shifts to RBA Hold and US Jobs Data

• August core PCE rose 0.2% m/m, exactly as forecast, leaving the annual rate steady at 2.9%. No real surprise here, but it does underline how sticky inflation remains.
• Treasuries were broadly unchanged into the weekend, with investors digesting the print and its policy implications. Over the week, the 10yr yield still edged 4bp higher, while futures continue to price around 40bp of cuts across the next two Fed meetings.
• Locally, the RBA is widely expected to stay on hold tomorrow. Governor Bullock will likely acknowledge upside risks on inflation but keep emphasis on the full CPI release in November before making any firm calls.
• This week’s domestic data calendar holds August household spending, goods trade, building approvals, and private credit.
• Offshore, all eyes will turn to Friday’s US payrolls, the major data event of the week.