Yields Hold Near Multi Decade Highs

• US long dated yields remain near their highest levels in over a decade, with the 30yr at around 5.28% and the 10yr at 4.74%. The Treasury is looking suppress these levels and contain long term borrowing costs, with details of a fiscal consolidation plan expected in coming days.
• Brent is trading at US$93/bbl, the upper end of its recent range, with the threat of severe sanctions on Iran’s trading partners reinforcing expectations of tighter supply in the weeks ahead.
• The US composite PMI rose from 54.5 to 56.0 in August, the highest reading since April 2022, led by the services sector. The result cuts against some of the recent cooler US activity indicators and lent further support to higher yields.
• Domestically, focus turns to CPI inflation data and household spending later this week, both key with the RBA still uncertain on the near term rate path.