TOKYO: US Treasuries stabilised in Asia on Friday after falling the previous day on encouraging private sector jobs data and unwinding of safe-haven bids after the European Central Bank offered support for Portuguese debt.
The yield on the 10-year notes stood at 3.15 percent, little changed from late US levels.
The yield rose on Thursday after the ADP National Employment Report showed private employment grew by 157,000 jobs in June from a revised 36,000 increase in May, handily surpassing the median economist forecast of a 68,000 gain.
Bond yields could rise further if upcoming payroll data on Friday points to a similar improvement in the job market and reduces worries the US soft patch could drag on.
There are also worries that looming bond auctions next week could draw tepid demand after the Federal Reserve wound up its $600 billion bond buying programme at the end of last month. Dismal auctions last week pushed bond yields sharply higher.
The Treasury said on Thursday it will sell $32 billion of three-year notes on Tuesday, $21 billion in ten-year notes on Wednesday and $13 billion of 30-year bonds on Thursday next week.
The market could gain if the euro zone's debt crisis deepens further. But market players are also worried about whether the US Congress will raise the debt ceiling, with less than one month left before Aug. 2, which Treasury Secretary Timothy Geithner has marked as the date when the US will run out of funding options unless the ceiling is raised.
Copyright Reuters, 2011
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