SINGAPORE: US 10-year Treasuries edged higher in Asia on Thursday as weak Australian jobs data added to concerns about a slowdown in global economic growth and supported demand for safe haven assets.
Ten-year Treasuries rose around 4/32 in price to yield 1.499 percent, down roughly 2 basis points from late US trade on Wednesday.
"There has been some buying due to the weak economic data out of Australia, and the market looks pretty firm," said a trader for a US brokerage house in Tokyo, adding that Treasuries were likely to stay supported in the near term.
"Yield levels below 1.5 percent seem a little bit overdone, but when taking into account the current situation and technical factors, I don't get the sense that we are at a juncture where there will be a big sell-off," the trader said, referring to the outlook for 10-year Treasuries.
Australian employment fell by 27,000 in June, a surprisingly weak outcome that led investors to price in a greater chance of further cuts in Australian interest rates.
The 10-year US Treasury yield had dipped to a low of 1.45 percent the previous day, only one basis point higher than a record low hit in early June, after a sale of 10-year notes drew huge demand from investors that buy directly from the government.
Investor demand for Treasuries will be tested again at a 30-year bond auction later on Thursday.
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