TOKYO: US Treasuries were steady in Asia on Monday after falling in the previous session, with market participants focused on the implications of disappointing US employment data and whether the US Federal Reserve needs to take more monetary steps to stimulate the economy.
Investors will be watching a speech by Federal Reserve Chairman Ben Bernanke later in the day for any signals on whether the US central bank will offer any further monetary stimulus or reiterate its pledge to keep rates low to support the recovery.
"Whether there will be more US quantitative easing is still in question, but the jobs figures suggested that at the very least, the Fed is going to maintain its easy policy stance for quite a while," said a portfolio manager at a Japanese asset management firm.
Data released on Friday showed US payrolls grew by just 120,000 in March, far below the expected increase of 203,000.
"The payrolls data was a negative surprise, but other reports such as the initial claims data showed a more positive picture," said Hiroki Shimazu, an economist in Tokyo at SMBC Nikko Securities.
The number of Americans lining up for new jobless benefits dropped to the lowest level in nearly four years last week, according to data released on Thursday.
The yield on the 10-year notes was at 2.07 percent, up from 2.05 percent in late US trade, but well below 2.18 percent in Asia on Thursday.
The 30-year bond yield edged up to 3.22 percent from 3.21 percent in US trading, but still down from 3.33 percent in Asia on Thursday.
The US Treasury market closed early on Friday ahead of the Easter holiday weekend.
Both 10-year bond yields and 30-year bond yields are now trading below their 200-day moving average, now at 2.18 percent and 3.32 percent respectively.
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