Trump Advisor Joins Fed Committee

• US Treasury yields edged higher following a soft 30-year bond auction. US government bond yields climbed on Thursday after a third consecutive weak debt auction this week.
• The US 10-year Treasury yield rose 2bp to 4.25%, while the 2-year lifted 3bp to 3.73%.
• Trump advisor Miran has been appointed to the Fed’s interest rate-setting committee and is expected to push for significantly lower rates in line with Trump’s stance.
• Fed Governor Waller, who supported a rate cut at the last FOMC meeting, is emerging as the frontrunner to replace Chair Powell.
• It’s a quiet day for domestic data, but markets are looking ahead to next Tuesday’s RBA meeting, where a 25bp rate cut is fully priced in, taking the cash rate to 3.60%.