Oil Prices Fall Despite Rising U.S.-Iran Tensions as Markets Watch Strait of Hormuz Developments 
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The United Kingdom’s gilts slumped during European trading hours Friday on hopes that the political uncertainty would resolve with a Brexit deal being approved.
The yield on the benchmark 10-year gilts, rose 2-1/2 basis points to 0.649 percent, the 30-year yield also jumped 2 basis points to 1.137 percent and the yield on the short-term 2-year traded 1 basis point higher at 0.485 percent by 11:35GMT.
The UK was one of the few bright spots in the markets on the back of optimism over the Brexit situation. EU and UK agreeing to a deal has reduced the risk of a no-deal Brexit, stoking investor confidence in British equities, noted OCBC Bank.
Looking ahead, we are expecting some risk-on sentiment in the markets as the US and China indicate more progress on trade negotiations. We see global equities possibly printing positive inflows while high yield and investment grade bonds may continue to outperform, the bank added.
Next week, investors would focus on the Federal Reserve monetary policy decision where it is widely expected to lower its fed funds rate to 1.50-1.75 percent – its third cut third year.
Meanwhile, the FTSE 100 fell about 1% lower at 7,285.15 by 11:40GMT.
