Australian Pension Funds Boost Currency Hedging as Aussie Dollar Strengthens 
Asian Markets Surge as Japan Election, Fed Rate Cut Bets, and Tech Rally Lift Global Sentiment 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Oil Prices Slip as U.S.-Iran Talks Ease Middle East Tensions 
Yen Slides as Japan Election Boosts Fiscal Stimulus Expectations 
UK Starting Salaries See Strongest Growth in 18 Months as Hiring Sentiment Improves 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
Australian Household Spending Dips in December as RBA Tightens Policy 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
The Australian government bonds suffered during Asian trading session Wednesday tracking a similar movement in the United States’ Treasuries after hopes arose of a successful Brexit deal soon amid a calmer trade talk situation between the U.S. and China.
However, investors shall keep a close eye on Australia’s labour market report for the month of September, scheduled to be released on October 17 by 00:30GMT, for further direction in the debt market.
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, jumped 3-1/2 basis points to 1.048 percent, the yield on the long-term 30-year bond surged nearly 4 basis points to 1.636 percent and the yield on short-term 2-year traded nearly 2 basis points higher at 0.722 percent by 04:20GMT.
Brexit optimism prompted GBP higher on hopes that EU and UK leaders are closing in on a deal ahead of the EU Council meeting tomorrow. The S&P500 rallied to four-week highs overnight on earnings optimism led by JPMorgan and Johnson & Johnson, whilst UST bonds also skidded with the 2- and 10-year yields up to 1.62 percent and 1.77 percent respectively, OCBC Treasury Research reported.
However, global risk sentiments may be off to a shaky start today after the IMF downgraded its global growth forecast for the fifth straight time by 0.2 percentage point to 3 percent for 2019 and by 0.1 percentage point to 3.4 percent for 2020, citing the familiar trade tensions, the report added.
Meanwhile, the S&P/ASX 200 index traded tad 0.43 percent higher at 6,712.50 by 04:25GMT.
