Tuesday, 31 January 2012 16:35
TOKYO: US Treasuries edged down in Asia but are seen as well-supported by mounting fears Portugal could follow Greece into debt restructuring, with the yield on five-year notes stuck near its lowest level in at least six decades.
The market was also underpinned after the Federal Reserve signalled last week that it would keep rates exceptionally low for another three years, with medium-term notes such as five-year paper the main beneficiaries.
The yield on 10-year T-notes stood at 1.86 percent, slightly off 1.85 percent in late US trade on Monday and a six-week low of 1.814 percent hit that day.
Five-year notes traded at a yield of 0.75 percent, near Monday's low of 0.7170 percent, the lowest level since at least the 1960s, as investors snatched up the maturity following the Fed's policy meeting last week. The yield has fallen about 20 basis points since then.
The latest catalyst for the rally in the ...