TOKYO: US Treasuries edged higher in Asia on Wednesday, as investors' risk appetite waned and stocks fell after minutes from the latest US Federal Reserve meeting dashed hopes that further stimulus measures were forthcoming.
MSCI's broadest index of Asia Pacific shares outside Japan fell 0.9 percent, and Japan's Nikkei average slid 2.1 percent.
"Fading stimulus hopes hit bonds, but they seem to be hitting stocks even harder, and that stopped bonds from sliding for now," said a trader at a Japanese brokerage.
Treasuries marked their biggest sell-off in three weeks overnight after minutes of the Fed's March policy meeting suggested policymakers were less likely to launch more monetary stimulus as the US economy continues to improve.
The yield on the 10-year notes stood at 2.28 percent , down from 2.30 percent in late US trade.
The thirty-year bond yield inched down to 3.41 percent from 3.43 percent in US trading.
Later on Wednesday, the Fed plans two debt buybacks as part of its "Operation Twist" stimulus programme aimed at bringing down long-term borrowing costs, under which it sells shorter-dated securities and buys longer-dated bonds.
The central bank will buy up to $2 billion in debt due between 2036 and 2042 and as much as $5 billion in notes maturing between 2018 and 2020.
On Tuesday, the US central bank bought $1.35 billion in Treasury Inflation-Protected Securities maturing between January 2021 and February 2042 from $2.54 billion offered.
Investors await key US employment data for March, scheduled to be released on Friday, for the latest clue to the strength of the economic recovery. The nonfarm payrolls report is expected to show that employers added 203,000 new jobs in the month.
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