Sentiment swings
• Burst of vol. Middle East tensions generated some vol. on Friday. The initial ‘risk off’ moves faded. US bond yields reversed course. The AUD rebounded.• Lofty USD. US interest rates have repriced a lot recently. Less than 40bps of Fed cuts now assumed in 2024. The USD may need a new driver to go higher.• Event radar. Locally, Q1 CPI is due (Weds). Offshore, Eurozone PMIs (Tues), US GDP (Thurs), US PCE deflator (Fri), & BoJ meeting (Fri) are in focus. Geopolitical tensions generated another spurt of volatility on Friday, although for the most part the knee-jerk ‘risk off’...