US Futures Fall as Fed Meeting, Oil Surge Rattle Markets 
Goldman Sachs Forecasts Fed Rate Hike as Inflation Risks Rise 
Japanese Yen Retreats as Dollar Rises Ahead of Fed, BOJ Rate Decisions 
Gold Prices Steady as Oil Disruptions Boost Fed Rate Hike Bets 
Gold Prices Slip as Fed Rate Hike Looms, Treasury Yields Rise 
Asian Bank Stocks Slide as BofA Warning and Rising Yields Hit Sentiment 
Houthis Escalate Saudi Attacks as Red Sea Oil Risks Grow 
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The Australian government bonds during Asian session of the last trading day of the week Friday after risk sentiments were lifted, following trade deal optimism amid ongoing Brexit uncertainties.
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, jumped 8-1/2 basis points to 1.296 percent, the yield on the long-term 30-year bond surged 8 basis points to 1.878 percent and the yield on short-term 2-year gained 2 basis points to 0.893 percent by 04:25GMT.
Risk sentiments got a major lift overnight amid hopes that existing US-China tariffs may be unwound as part of the Phase 1 deal. Meanwhile, the Bank of England kept its policy rate static at 0.75 percent but the fact that there were two dissenters preferring a 25bp rate cut amid the Brexit uncertainties suggest that the bias has clearly turned dovish, OCBC Treasury Research reported.
The S&P500 rose 0.27 percent while UST bonds tumbled with the 10-year yield hitting a three-month high of 1.97 percent before closing at 1.92 percent. Fed funds futures pricing of a further 25bp rate cut was also pared further.
Lastly, the European Commission (EC) cut its growth forecast to 1.2 percent by 2021 with a muted inflation outlook of 1.3 percent then, with risks leading decidedly to the downside, especially with the possibility of a disorderly Brexit, and called for using available fiscal space actively, the report added.
Meanwhile, the S&P/ASX 200 index edged tad -0.34 percent down to 6,687.50 by 04:30GMT.
