- A broader rise in global bond yields spilled into US Treasuries overnight, pushing the 2-year up 6bps and the 10-year up 7bps. The move came despite relatively contained Fed expectations, with just a 17% chance of an October hike priced.
- Australian yields followed global markets higher, with 3-year futures-implied yields up around 2bps and the 10-year up 4bps. Markets currently price around a 23% chance of an RBA hike in November.
- Brent pushed above US$110/bbl, a five-month high, after Iran said it had “no choice” but to assert control over the Strait of Hormuz. Renewed attacks across the Gulf continue to keep supply and inflation risks elevated.
- US housing conditions weakened further, with the NAHB Housing Market Index falling to 29, its lowest since 2012, as high mortgage rates and construction costs continue to weigh on demand.
- Consumer Confidence and US Housing Starts are the key releases today, while remarks from the RBA’s Ellis Connolly will also be watched for any policy signals
