Bond yields fall as recession fears grow after weak personal spending numbers from the US. But NAB’s Tapas Strickland says it is being met with any signs of a sustained fall in inflation. So, just how far do central banks need to go?

We now understand how little we understand about inflation says the Fed’s Jerome Powell. That doesn’t inspire you with confidence says NAB’s Gavin Friend!

Hawkish commentary from the ECB has pushed up European yields, whilst weak consumer sentiment hits US equities. NAB’s Taylor Nugent talks through market moves overnight.

NAB’s Rodrigo Catril says US equities reflect the uncertainty over the impact of rate rises and the worsening situation in Ukraine.

A downgrade to inflation expectations on Friday gave market sentiment a boost. NAB’s Ray Attrill says it’s been taken as a sign that central banks might have to do less to soften demand and a reduced fear in recession risk.

Weaker data from Europe. NAB’s Ken Crompton says we’re already seeing a watering down of expectations for anything higher than 25bp for the ECB’s first hike, whilst Jerome Powell renews the Fed’s unconditional commitment to do what it takes.