As a final element of the always a winner forecasting model, it is useful to look at inflation indicators like the consumer price index and the producer price index.
Other inflation indicators, such as pricing intentions, improved slightly but remained at low levels, reflecting the continued deflationary impact of tradeable inflation and weak global inflation pressures.
We see an upward bias to local yields initially today, given offshore moves, with key data to watch being the inflation indicators in the business survey early afternoon.
