The 2018-19 underlying deficit is expected to be AUD20.5 billion from AUD21.4 billion previously. U.S. Treasury markets were quite volatile last week as investors continued to react to the U.S. Federal Reserve monetary policy statement from earlier in the month which showed the central bank was likely to raise interest rates at least three times. Traders and investors had piled into "curve flattener" bets on expectations the Federal Reserve will raise short-term rates further and long-term inflation would stay tame.