SINGAPORE: US 10-year Treasuries fell on Monday, with investors cautious after last month's sharp selloff, which was sparked by worries that the Federal Reserve might slow its bond purchases later this year.
Ten-year Treasuries fell 5/32 in price to yield 2.149 percent.
The 10-year yield edged up about 2 basis points from late US trade on Friday and was not very far from a 13-month high of 2.235 percent set last Wednesday.
Treasuries remained on the defensive in Asia after a report on Friday showed that business activity in the US Midwest reaccelerated in May.
More economic data is coming up later on Monday, including the Institute for Supply Management's gauge of manufacturing activity for May.
Even more than economic indicators, what investors are concerned about is the market's recent price action, said a trader for a US brokerage in Tokyo.
"Everybody is worried about the possibility that bond yields could head higher," the trader said.
At the same time, market players still harbour doubts on whether economic data will continue to show steady improvement and whether the Fed will really taper its quantitative easing very soon, he added.
Ten-year Treasuries suffered a sharp selloff in May, when the yield climbed nearly 46 basis points for its biggest monthly rise since December 2010.
Treasuries took a hit in early May from better-than-expected nonfarm payrolls data for April, and they retreated further after Fed Chairman Ben Bernanke told Congress on May 22 that a decision to pare the Fed's current pace of bond purchases may happen at one of Fed's "next few meetings" if the economy looked set to maintain momentum.
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