The week ahead is light in terms of US macro data. But markets will be looking at Moody's downgrade of US from Aaa to Aa1. US bond yields are likely to open higher with DXY lower. US equities too should see 1-1.5% gap down on Monday opening. Investors will likely also keep an eye on fiscal developments in Washington D.C. as the House is expected to vote on its reconciliation package. In Fed speak this week investors will be keenly listening to those officials who will be appearing at the Atlanta Fed's annual Financial Markets Conference in Amelia Island, Florida. In RoW macro data, we have UK CPI likely coming at 3.4% in April and Canadian CPI coming at 2.3%. We also have PMIs data for Eurozone as well as S&P PMI for US this week. PMIs likely drifted higher this month globally. In central bank policy meet, we expect RBA to do a cautious 25 bps cut along with change in QT to active from the current passive mode. In UST auction supply, we have 16 BN USD of 20 year bonds & 18 BN USD of 10 year TIPS.
