Daily Points

Global markets are grappling with stagflationary PMI data and volatile oil prices while Australian yields tumbled on weak employment data. FOMC minutes suggest a more hawkish stance than previously realized, focusing on persistent inflation risks.

Key Takeaways

• 1.Global PMIs indicate a trend of decelerating growth paired with accelerating inflation (stagflationary signals) across major economies except India.
• 2.The Australian labor market showed unexpected weakness with 18,600 jobs lost in April, leading to a sharp 9bps drop in 2-year yields.
• 3.FOMC minutes revealed a hawkish tilt, with a majority of participants open to policy firming if inflation remains persistent.

Table of Contents

• AUSTRALIAN RATES DROP AS JOB MARKET WEAKENS
• GLOBAL PMIS — WEAKER GROWTH, HIGHER INFLATION
• FOMC MINUTES — WHAT SURPRISED, WHAT COULD YET SURPRISE
• ANNUAL NONFARM REVISIONS WILL HIT JUST BEFORE THE SEPTEMBER FOMC
• US CLAIMS STEADY, HOUSING STARTS SLIPPED

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