TOKYO: Treasuries prices were steady in Asia on Thursday, after dipping overnight as the US Federal Reserve gave no sign that it was in a hurry to make another round of bond purchases to stimulate the economy.
The Fed held policy steady on Wednesday and reiterated its expectation that interest rates would not rise until late 2014. Chairman Ben Bernanke said at his post-meeting news conference that he was comfortable with the central bank's policy stance, though it was prepared to do more to aid the US economy if necessary.
The Fed also tweaked its economic forecasts on Wednesday to take into an account improving employment and slightly higher inflation over the next few years, which also reduced hopes it would take more stimulative steps for the economy.
"The next hurdle for the debt market will be the US nonfarm payrolls report next week, when Japan will be on holiday," said a fixed-income fund manager at a Japanese asset management firm in Tokyo.
Japan's markets will be closed Monday, Thursday and Friday for the Golden Week holidays. US employment data for May will be released on Friday, May 4.
"Japanese investors have to think about how to position for the payrolls data," he added.
The yield on the 10-year notes stood at 1.98 percent, matching its level in late US trade, and up from 1.96 percent in Asian trade on Wednesday.
The 30-year bond yield stood at 3.15 percent, steady from late US trading, and above 3.11 percent in Asia on Wednesday.
On the supply side, the Treasury will sell $29 billion of new 7-year debt on Thursday.
On Wednesday, the Treasury's sale of $35 billion of 5-year notes met strong demand, with strong interest from foreign central banks and other indirect bidders. The notes sold at a high yield of 0.887 percent, only slightly above the record auction low of 0.880 percent set in December.
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