Treasury Yields Continue Decline

• US government bond yields extended Friday’s sharp post-payrolls drop, with the 10-year even hitting a one‑month low. On Monday, it eased a further 2.5bps to 4.19%, while the 2-year was steady at 3.68%.
• The softer labour market data is now meeting a heavy issuance calendar, with the US Treasury set to auction $125bn in 3-, 10- and 30‑year notes, the largest weekly supply since May. This could provide some headwinds for recent price gains.
• In Australia, the 10-year yield sits at 4.21%, with markets fully pricing a 25bp RBA cut at the 12 August meeting.
• Today’s domestic focus is the June Household Spending Indicator, expected to rise 0.8%. Such an outcome would lift the annual pace to 5.0% y/y and support signs that activity strengthened in May and June.