US Economy Showing Mixed Signals

• US data on Friday painted a mixed picture, with July retail sales surprising to the upside at +0.5% m/m and prior months revised higher.
• In contrast, consumer sentiment slipped sharply, with the University of Michigan survey falling to 58.6.
• Inflation expectations also moved higher to 4.9%, highlighting the tension between still-solid spending and a softer labour market alongside tariff concerns.
• Bond yields pushed higher into the weekend, led by the long end, with the 10y UST adding 3bp to 4.32%.
• Locally, the week ahead is light on data, but we do get the monthly consumer confidence on Tuesday. The focus, however, will be on Canberra where the Treasurer’s Economic Reform Roundtable takes place, with boosting productivity growth expected to dominate discussions.