EU Delays Mercosur Free Trade Agreement Signing Amid Ukraine War Funding Talks 
U.S. Stock Futures Slip After CPI-Fueled Rally as Markets Weigh Economic Uncertainty 
Precious Metals Rally as Silver and Platinum Outperform on Rate Cut Bets 
Austan Goolsbee Signals Potential for More Fed Rate Cuts as Inflation Shows Improvement 
Japan Exports to U.S. Rebound in November as Tariff Impact Eases, Boosting BOJ Rate Hike Expectations 
Asian Stocks Slide as AI Spending Fears and Global Central Bank Decisions Weigh on Markets 
U.S. Dollar Steadies Near October Lows as Rate Cut Expectations Keep Markets on Edge 
Asian Markets Rebound as Tech Rally Lifts Wall Street, Investors Brace for BOJ Rate Hike 
Japan Inflation Holds Firm in November as BOJ Nears Key Rate Hike Decision 
Chinese Robotaxi Stocks Rally as Tesla Boosts Autonomous Driving Optimism 
Australian bonds slumped on the last trading day of the week Friday following weakness in the U.S. Treasuries, which hovers around 4-year high. Also, investors remain optimistic ahead of the Reserve Bank of Australia (RBA) February meeting minutes scheduled to be released next week.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1 basis point to 2.904 percent, the yield on the long-term 20-year note also surged nearly 1 basis point to 3.313 percent and the yield on short-term 3-year up 1 basis point to 2.143 percent by 03:20 GMT.
On Thursday, Australia posted a 16K gain in employment in January 2018 which records the longest streak of employment gains with a 16th consecutive positive print. At the same time, the country’s unemployment rate fell slightly in January to 5.5 percent from 5.6 percent in December, revised up from 5.5 percent. This came with a decline in the participation rate to 65.6 percent from 65.7 percent.
In the United States, Treasuries saw a mixed performance overnight as short-end weakness was contrasted by upward pressure further out the curve, partly undoing some of the decline registered in the wake of the January CPI report on Wednesday.
On balance, we continue to anticipate gradually higher yields in the weeks to come, though some sideways drift is likely to be seen in the interim, given little in the way of significant market data to weigh on Treasuries in the near-term. Markets now look ahead to a lighter flow of data to finish off the week on Friday, highlighted by housing starts/building permits, import prices and University of Michigan consumer sentiment, none of which is likely to add to or detract from recent momentum as markets build some concern for inflation prospects in the months to come.
Meanwhile, the S&P/ASX 200 index traded 0.20 percent lower at 5,868.5 by 03:30 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 40.86 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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