TOKYO: US Treasuries fell slightly in Asia on Thursday after better-than-expected US retail sales data the previous day boosted confidence in the US economy, although strong results from an auction of 10-year notes capped losses.
The yield on 10-year notes ticked up to 2.031 percent, from around 2.023 percent in late US session. It rose as high as 2.05 percent on Wednesday after data showed retail sales rose 1.1 percent last month, more than double a median forecast of 0.5 percent growth.
The data suggested the so-called fiscal cliff -- the end of a payroll tax cut in January and automatic government spending cuts from March -- did little damage to consumer sentiment.
"It looks like the US economy is on course to grow about 2.5 percent in the first quarter of this year. Where's the cliff?" said Arihiro Nagata, foreign bond investment manager at Sumitomo Mitsui Bank.
Still, losses were limited as the Treasury's sale of $21 billion 10-year notes on Wednesday drew strong demand, confirming strong investor appetite in a market where the Fed soaks up a considerable amount of bonds on a daily basis.
Foreign central banks, large fund managers and other indirect bidders bought their biggest share of the offering since Dec. 2011, according to data released by the US Treasury Department.
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