Multi Decade Highs

• Oil rallied on renewed unease over the Strait, with US strikes in response to Iranian attempts to lay sea mines pushing WTI back above US$90/bbl and Brent to US$95/bbl, and the US 10yr followed to 4.80%.
• Bond yields pushed higher across major markets as instability persists and any resolution remains distant. European markets are focused on the risk of longer term energy price inflation, Japanese 10yr yields touched 3% at auction for the first time since 1996, and UK 30yr gilts reached their highest level since 1998.
• The Australian 10yr is nearing 15 year highs at 5.18%, while national house prices fell 0.9%, confirming the weakening in the housing market.
• Following yesterday’s partials, Q2 GDP is released this morning, with consensus at 0.3% for the quarter and 1.8% over the year. The print will give a read on the growth pulse heading into mid-year, at the height of the Middle East conflict.