TOKYO: US 10-year Treasuries slipped in Asia on Tuesday on light profit-taking on gains made after Germany poured cold water on hopes of a quick solution to the European debt crisis, with traders awaiting a speech by Federal Reserve Chairman Ben Bernanke.
The 10-year note dipped around 6/32 in price to yield 2.176 percent, compared with 2.155 percent in New York late on Monday. In the stock market, S&P futures rose 0.2 percent.
Treasuries were lightly supported early in Asian trade after Moody's warned it may slap a negative outlook on France's Aaa credit rating in the next three months if the country fails to make progress on crucial fiscal and economic reforms.
Profit-taking then kicked in as a batch of Chinese data came in broadly in line with expectations, confirming that China's economic growth was moderating but not weakening sharply.
The 10-year note is now hovering close to support around 2.266 percent, the 38.2 percent retracement of a July to September rally in the maturity. More support is clustered near 2.3 percent to 2.31 percent, an area containing a few daily highs hit in late August.
Focus turns to Fed chairman Bernanke as he speaks on "The Effects of the Great Recession on Central Bank Doctrine and Practice" before the Federal Reserve Bank of Boston 56th Economic Conference, Boston, Massachusetts at 1715 GMT.
The Treasury Department holds its weekly sale of four-week bills and sells 52-week bills at 1530 GMT.
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