Trump Extends Deadline as Yields Climb

• RBA Assistant Governor (Financial Markets) Christopher Kent spoke yesterday with a firmer tone, stressing the need to stop short-term inflation pressures feeding into longer-term expectations.
• Attention now turns to the minutes from the March RBA meeting, due next week. Markets will be watching to see whether Kent’s remarks reflect the broader tone of the Board, particularly around where policymakers see the neutral rate.
• In the Middle East, tensions eased slightly after President Trump confirmed the US would delay any strike on Iranian energy infrastructure for another ten days.
• Oil had already been pushing higher through the session, rising more than 5% at one stage as supply risks were priced in, before easing after the announcement.
• US Treasury yields moved higher, with the belly of the curve under the most pressure. The 10-year rose about 8bp to 4.41%, its highest level since July last year.