TOKYO: US Treasuries edged up in Asia on Thursday but trading activity was limited as investors braced for events including a speech by Federal Reserve Chairman Ben Bernanke and a job-creating package to be unveiled by President Barack Obama later in the day.
Media have reported that Obama will unveil some $300 billion in tax cuts and government spending as part of a job-creating package.
Bernanke will speak on the US economic outlook and special attention will be paid to any hints as to the possible implementation of Operation Twist, a strategy aimed at lowered longer-term borrowing costs.
"Market expectations have risen for the Fed's Operation Twist. But as the Fed meeting is scheduled for later in September, the Fed chairman may only say that the central bank is considering various options," said Shinichiro Kadota, a non-yen fixed income strategist at Barclays Capital in Tokyo.
Ten-year notes rose 7.5/32 in price to yield 2.015 percent, compared with 2.041 percent in late US trade on Wednesday. The 10-year yield fell as low as 1.908 percent on Tuesday, its lowest in at least 60 years.
The 30-year bond rose 16/32 in price to yield 3.334 percent, versus 3.359 percent late US trading.
Increasing worries over the debt crisis in the euro zone and its possible impact on the banking sector continued to support the market.
Copyright Reuters, 2011
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