SINGAPORE: US 10-year Treasuries were little changed in Asia on Wednesday and were seen likely to be supported on dips, with the euro zone's sovereign debt crisis helping to bolster the safe haven appeal of US debt.
Ten-year Treasury notes were little changed in price to yield 1.860 percent, little changed from late US trade on Tuesday and hovering near the lower end of its range since late December of between 1.836 percent to 2.056 percent.
Although recent moves in dollar funding markets and equities point to an easing in risk aversion, uncertainty over the situation in Europe has supported demand for Treasuries and that seems likely to continue in the near term, said Tomohisa Fujiki, interest rate strategist for BNP Paribas Securities in Tokyo.
"There has been a continuation of a situation in which buying tends to emerge when yields rise," Fujiki said.
Market players are now focusing on the fate of negotiations to slash Greece's debt that are due to resume on Wednesday, as well as auctions of Spanish debt on Thursday, he added.
Comments
Comments are closed for this article.