SINGAPORE: US 10-year Treasuries edged lower and the 10-year yield hovered near an 11-month high in Asia on Tuesday after US stock markets rose the previous day, curbing demand for safe haven debt.
Ten-year Treasuries fell about 2/32 in price to yield roughly 2.069 percent, up about 1 basis point from late US trade on Monday.
The 10-year yield stayed near an 11-month high of 2.087 percent set on Friday after jobs data showed a larger-than-expected rise in US payrolls in February.
In the stock market, the Dow Jones industrial average ended at a record closing high on Monday, while the Standard & Poor's 500 index touched its highest intraday level since October 2007.
The rise in US equities on Monday weighed on Treasuries in Tuesday's Asian trade, said a trader for a US brokerage in Tokyo.
In addition, demand for Treasuries from traders looking to cover their short positions seems to have dissipated for now, he said. "A lot of people who were short the market have already covered," the trader said.
The US Treasury is due to sell $66 billion in Treasuries this week, with a three-year note auction coming up later on Tuesday followed by auctions of reopened 10-year notes on Wednesday and reopened 30-year bonds on Thursday.
While Tuesday's three-year note auction seems likely to attract solid demand, the market will probably trade heavily ahead of the later auctions of 10-year and 30-year Treasuries, said the trader for a US brokerage house.
If those auctions are well received, Treasuries might rally going into the weekend, he added.
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