Quarterly CPI The Focus Today

• The US market traded with a cautious tone overnight, with the Treasury curve flattening, notably the UST 10-year yield fell 8bps to 4.32%.
• This move reflected expectations for the Treasury’s quarterly refunding to favour shorter maturities, alongside weaker-than-expected JOLTS job openings data (7.44m), pointing to a cooling labour market.
• A busy day ahead for data, led by Australia’s Q2 CPI at 11:30am. Consensus looks for a trimmed mean print of 0.7% q/q and 2.7% y/y, one tenth above the RBA’s May SoMP forecast of 0.6% and 2.6%.
• The US FOMC also meets overnight and is widely expected to hold rates steady. However, markets will be alert to any dissents from Governors Waller or Bowman, who have recently voiced support for a July rate cut.