SINGAPORE: US 10-year Treasuries inched lower in Asia on Thursday, but their losses were limited ahead of a European summit and right before the end of first-half 2012.
Ten-year Treasury notes dipped 3/32 in price to yield 1.631 percent, up around 1 basis point from late US trade on Wednesday. The 10-year yield has been in a range of roughly 1.55 percent to 1.73 percent in the past three weeks.
Moves in Treasuries over the past few days have been subdued ahead of a summit of European leaders on Thursday and Friday and with the 2012's first half drawing to a close, said Tomohisa Fujiki, interest rate strategist for BNP Paribas Securities in Tokyo.
Looking ahead, there might be some scope for safe haven Treasuries to be bought and for the 10-year yield to decline from current levels, since the European Union summit may not do much to stabilise markets that have been affected by the euro zone's debt crisis, Fujiki said.
"Looking at various comments (from policymakers) it looks like there are rifts in their positions and it seems prudent not to become too optimistic," he said.
The US Treasury is due to sell $29 billion of seven-year notes later on Thursday.
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