Markets continued in risk-off mood as China announced its response to President Trump’s threat of extended import tariffs. The price to pay is a halt to the purchase of US agricultural products and a weakening Yuan. As Phil Dobbie discusses with NAB’s David de Garis, the market knows this trade dispute isn’t going to get better anytime soon. Meanwhile the 3m 10y US Treasury curve is now at its most inverted since 2007, just before the global financial crisis. Is this a signal that the world is heading for a recession? Ad on the Brexit front, more signs that Boris Johnson is heading for a no-deal departure. With all this going on, the RBA is still expected to keep rates on hold, but what signals will they send about the rest of the year?