TOKYO: US Treasuries were steady in Asia on Thursday, as investors awaited an Italian debt auction later in the day for the latest signal on how European countries are managing their debt situations.
The market reaction to Italy's 5 billion euro bond sale is expected to provide clues to investors' appetite for risk.
"We might not see much movement in Treasuries until the Italian auction is out of the way, and then the US session will see some more supply," said a fixed-income fund manager at a Japanese trust bank.
Later Thursday, the US Treasury Department will offer $13 billion of 30-year bonds.
A $21 billion offering of 10-year debt met demand that was largely in line with market expectations.
Bonds were underpinned by remarks from Janet Yellen, the No. 2 official of the US Federal Reserve, who said on Wednesday that the central bank's ultra-easy monetary policy is appropriate given high unemployment and the headwinds facing the economy.
The yield on the 10-year notes was at 2.03 percent, steady from late US trade, and slightly above 2.00 percent in Asian trade on Wednesday.
The 30-year bond yield was at 3.19 percent, compared with 3.18 percent in late US trading. It was at 3.15 percent in Asia on Wednesday.
European Central Bank Executive Board member Benoit Coeure helped alleviate some recent market concerns about Europe's debt crisis by saying on Wednesday that the ECB still had its bond-buying programme as an option it can employ.
The market showed little reaction to the Fed's "Beige Book" report on Wednesday, which showed the US economy continued on its moderate growth path despite concerns about higher prices.
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