DOLLAR FIRMS, BONDS FALL
Increased expectations of monetary easing by central banks in Europe and Japan lifted the U.S. dollar, along with gains in global equities and oil prices.
Bank of Japan Governor Haruhiko Kuroda said there is further room for the bank to expand its quantitative easing programme if inflation continues to wane.
The comments came a day after European Central Bank President Mario Draghi said the bank would need to review its policy in March, which was read by markets as a promise of more easing.
The dollar rose 0.9 percent to 118.75 yen, while the euro fell below $1.08 for the second time in as many days, nearing a two-week low.
U.S. Treasuries prices slumped as the resurgence in oil and stock prices sparked a fresh wave of selling of safe-haven government debt.
Benchmark 10-year Treasury notes were down 9/32 in price to yield of 2.052 percent, up 3 basis points from late on Thursday. The 10-year yield climbed from 1.939 percent on Wednesday, the lowest since early October.
In the precious metals market, gold fell as equities rallied. Spot gold was down 0.6 percent at $1,095.16 an ounce.
(Additional reporting by Noel Randewich in San Francisco and Abhiram Nandakumar in Bengaluru; Editing by Bernadette Baum, Dan Grebler and Nick Zieminski)