TOKYO: The yield on the benchmark US Treasury note crept higher in Asia on Wednesday but investors stayed mostly on the sidelines before the end of a Federal Reserve meeting that marks the start of a new practice of announcing policymakers' interest rate projections.
The 10-year US note's yield edged up to 2.072 percent from 2.060 percent in late US trade and 2.042 percent in Tokyo on Tuesday. The yield had risen as high as 2.094 percent on Friday, its highest since early December.
The yield on 30-year bonds was steady from late US levels at 3.15 percent, up from 3.14 percent the previous day.
"There may be some selling as risk appetite improves, but overall investors are awaiting the outcome of the Fed meeting, and continuing uncertainty about the European debt situation should support prices and keep yields in check for a while," said a market participant at a Japanese brokerage.
After its two-day policy meeting concluding later on Wednesday the US central bank will publish policymakers' individual forecasts for the path of overnight rates, including their views on when the first rate hike will come. The new rate projections are expected to show that most Fed officials see no rise in rates until 2014.
The Fed may also announce an agreed target for inflation, which would likely be in a range of 1.7 to 2 percent that the majority of Fed officials have already said is desirable.
The Treasury auctioned $35 billion of two-year notes on Tuesday, the first of three auctions this week in which it will offer $99 billion in new debt. Demand was average, with the high yield of 0.25 percent near expectations. The Treasury will auction $35 billion of five-year notes on Wednesday and $29 billion of seven-year notes on Thursday.
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