TOKYO: US Treasuries stabilised in Asia on Thursday, having slipped slightly the previous day after the Federal Reserve held its course on monetary policy.
Although there was a bit of profit-taking after the Fed, as expected, held off taking any further easing steps, the market is likely to be supported after the Fed repeated its vow to keep rates near zero until mid-2015, market players said.
The central bank's statement differed little from its announcement last month in which it launched its third round of bond-buying, or quantitative easing, known as QE3, and made clear officials still had concerns on the recovery's strength.
"The fact that the Fed kept more or less the same language despite recent improvement in many data will prove to be a supporting factor for Treasuries," said a trader at a Japanese bank.
The 10-year notes yield stood at 1.794 percent , almost flat from late US levels, and just below its 200-day moving average at 1.805 percent.
Since hitting a one-month high of 1.836 percent a week ago, the yield has been stuck around its 200-day moving average level as investors shun making large bets as the presidential race gets tight.
A victory by Republican candidate Mitt Romney is seen by many as negative for bonds, as it could spur rally in shares on hopes of business-
friandly policies. It could raise doubts on the Fed's commitment to aggressive easing as many Republicans oppose quantitative easing.
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