The Week Ahead

• US government bond yields ended higher on Friday, with the 10-year up 4bp to 4.28% and the 2-year gaining 3bp to 3.76%. Across the week, yields rose between 7bp and 8bp, as a run of underwhelming Treasury auctions weighed on demand and pushed yields upward.
• Today’s local calendar is quiet, but the week ahead is packed with key events. The focus first turns to Tuesday’s RBA meeting, where a 25bp cut to 3.60% is fully priced in.
• Attention will then shift to Wednesday’s Wage Price Index, expected to show further growth, before Thursday’s unemployment data, forecast to ease to 4.2% from 4.3%.
• In the US this week, we have CPI on Tuesday, PPI on Thursday, and Retail Sales on Friday, each print likely to influence near-term Fed expectations.