SINGAPORE: US 10-year Treasury notes edged lower in Asia on Tuesday, but their downside was seen likely to be limited due to ongoing worries over the euro zone's sovereign debt crisis.
Ten-year Treasuries fell around 6/32 in price to yield 1.979 percent, up around 2 basis points from late US trade on Monday, but still within its 1.798 percent to 2.056 percent range seen over the past three weeks.
While some market players have probably gone short Treasuries recently due to an improvement in US economic data, flight-to-safety buying of Treasuries has also been strong, said a trader for a European brokerage house in Tokyo, adding that such safe haven demand has supported Treasuries.
The US Treasury Department will sell $32 billion in three-year notes on Tuesday. With the Federal Reserve having anchored short-term rates with a pledge to keep them near zero at least through the middle of 2013, the market is seen as unlikely to have much trouble absorbing the fresh supply.
After that, the Treasury will sell 10-year notes on Wednesday and 30-year bonds on Thursday.
Comments
Comments are closed for this article.