Investing.com - The ASX 200 is set to open lower on Friday as Australian bond yields are experiencing a surge, driven by inflation data that outpaced expectations earlier this week. This development has led traders to virtually eliminate the possibility of interest rate cuts from the Reserve Bank in 2024. Consequently, the increase in risk-free rates has pushed ASX 200 Futures down by 0.3% as the market prepares to open on Friday.
Specifically, Australian 10-year bond yields saw a leap of 15 basis points, reaching 4.55%. Concurrently, the Australian 1-year yield rose by 7 basis points to 4.31%, just shy of the cash rate of 4.35%.
In the US, stocks took a hit after GDP data for the March quarter fell short of expectations, coming in at 1.6%. Compounding this disappointment, a principal inflation indicator exceeded expectations. This combination of lower-than-anticipated growth and higher-than-forecasted inflation led to a negative reception in the markets.
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Despite the broader market downturn, tech giants Microsoft Corporation (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) Inc (NASDAQ:GOOG) outperformed earnings expectations. Alphabet, Google's parent company, announced its first-ever dividend and saw an 11% increase in its shares in after-hours markets, hitting a new record high.
However, not all tech companies shared this positive trajectory. Atlassian Corp Plc (NASDAQ:TEAM) shares fell 6.5% in after-hours markets following the announcement of its earnings and the impending resignation of co-chief executive Scott Farquhar.
Ahead in Friday's session, investors will be closely monitoring local import and export price indexes as well as fresh PPI data. In the US, PCE price index data, personal income and spending are also set for release.
