TOKYO: US Treasuries held firm in Asia, with yields on 10-year bonds near a two-week low on Wednesday after Federal Reserver Chairman Ben Bernanke suggested he is still committed to keeping easy policy in place despite some signs of recovery in the US economy.
Bernanke said on Tuesday it was too soon to declare victory in the US economic recovery, and that the central bank would take no options off the table, but did not suggest a further round of bond buying was imminent.
"The market is recovering as Bernanke has quelled doubts about the Fed's commitment to keep rates low until late 2014. The market is vulnerable when short-term notes are sold but as they are getting firmer, the entire market is supported," said Arihiro Nagata, the head of foreign bond investment at Sumitomo Mitsui Banking Corp.
The policy-sensitive two-year notes traded at yield of 0.337 percent, not far from Tuesday's low around 0.319 percent and down sharply from seven-month high of 0.414 percent hit this month.
The yield on 10-year Treasury notes stood at 2.193 percent , little changed from 2.187 percent in late US trade and near two-week low of 2.175 percent hit on Tuesday.
Many market players expect the 10-year yield to trade in a rough 2.1 - 2.4 percent band until upcoming economic data, such as next week's payroll data, sheds new light on the state of the economy.
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