TOKYO: US Treasury prices slipped in Asia on Monday after unexpectedly firm China manufacturing data eased worries about a hard landing in the world's second biggest economy.
The yield on 10-year notes rose to 2.24 percent , compared to 2.21 percent at the end of last week and further edging up from a two-week low of 2.14 percent touched on Friday.
China's big factories were surprisingly busy in March with the official Purchasing Managers' Index (PMI) jumping to an 11-month high of 53.1 in March, up from February's 51 and comfortably beating forecasts of 50.5.
The market is now looking to US factory data at 1400 GMT. Economists expect the ISM manufacturing index to climb to 53.0 in March from 52.4 in February.
Optimism on the global economic outlook has been keeping buying in check, with a yield of 2.1 percent seen as major resistance.
But bargain-hunting from investors is seen as solid at 2.4 percent in the 10-year yield, a 4-1/2 month yield high hit last month, given expectations that the Federal Reserve will keep to its easy stance on monetary policy.
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