SINGAPORE: US 10-year Treasury notes inched higher in Asia on Tuesday, with the focus shifting to a batch of US data coming this week amid heightened concerns about the global economy's outlook.
Ten-year Treasuries rose 2/32 in price to yield 1.659 percent, down around 1 basis point from late US trade on Monday and inching away from a two-month high of 1.731 percent hit last week.
Ten-year notes may regain some footing in the near term after the recent sell-off, especially if this week's US indicators come in weak, said Shinichiro Kadota, a strategist for Barclays Capital in Tokyo.
"Last week's quarterly refunding auctions were partly behind the rise in bond yields, and with those now out of the way, yields will probably head back lower," Kadota said.
The near-term focus will be on a batch of US indicators, including retail sales due later on Tuesday, he said. Such data will come on the heels of last week's disappointing reading on Chinese exports that stirred fresh worries about the outlook for global growth.
Safe haven Treasuries have retreated this month after the European Central Bank indicated it may start buying government bonds again to help bring down crippling borrowing costs in Spain and Italy, with a sell-off in 10-year Treasuries gaining added steam last week in the wake of a lacklustre 10-year note auction.
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