LONDON: US Treasuries rose on Friday as concerns about how the euro zone will address the problems of its weakest members and the lack of supply pressure near-term pushed investors towards the low-risk bonds.
This week's sales of $66 billion in longer-dated US debt weighed on US Treasury prices in previous sessions, especially as lukewarm demand suggested that an anticipated surge in US bond demand from Japanese investors has yet to materialise.
The bets of increased Japanese flows were triggered by the Bank of Japan's plans to print unprecedented amounts of money and push domestic investors towards higher-yielding non-yen assets abroad.
Despite the fact that so far there has been little evidence of an increase in Japanese demand, traders still expect such flows in the future.
US 10-year T-note yields were last 3.6 basis points lower at 1.7553, while T-note futures were 9/32 higher at 132-53/64.
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