TOKYO: US Treasury bond prices were steady in Asia on Thursday as worries about whether Greece will ultimately exit the euro zone offset any concern about new supply.
The Treasury will sell $29 billion in seven-year notes on Thursday as the final installment of this week's $99 billion of new debt sales.
The sale of $35 billion of five-year notes on Wednesday afternoon brought a record low yield for such an auction, at 0.748 percent.
A sale of $35 billion of two-year notes on Tuesday met with near average demand.
European Union leaders said on Wednesday that they were committed to Greece remaining in the euro zone, but that the country needed to maintain its austerity commitments, which would have heavy social costs for Greeks.
Greece will face its second election in just over a month on June 17, which could determine whether the country stays in the euro.
"Until the Greek election, the market is moving on rumours, headlines and possibilities," said Tomoaki Shishido, fixed income analyst at Nomura Securities.
"If there are no new developments, the market will remain steady, or maybe soften, but yields head back down whenever there is anything to suggest bad news," he said.
Officials told Reuters that each euro zone country agrees they will have to prepare a contingency plan in case Greece exits the single currency.
The yields on 10-year notes stood at 1.74 percent, compared with 1.73 percent in late U.S trading, and 1.76 percent in Asian trade on Wednesday.
The 30-year bond yield was at 2.82 percent, compared with 2.81 percent in late US trade and 2.85 percent in Asian trade on Wednesday.
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