US 30-year bonds dip on profit-taking
SINGAPORE: US 30-year Treasuries fell in Asia on Thursday as investors booked profits after the previous day's rally, but losses were limited with mounting worries over Italy's debt lending support to safe haven assets.
US 30-year Treasuries fell 10/32 in price to yield around 3.039 percent , up around 1 basis point from late US trade on Wednesday. Ten-year note futures fell 3.5/32 to 130-22.5/32.
Some traders who were long Treasuries probably decided to conduct some profit-taking, said a trader for a US brokerage in Tokyo. "But I don't think anyone is establishing a short here," he added.
"I think people are happy to own anything that's safe and for them Treasuries and (German) Bunds will do the trick at this point," the trader said.
Political turmoil in Italy has made it the epicenter of the worsening euro zone debt crisis this week as markets worried about its ability to adopt reforms to cut its debt burden. Such worries have sparked a selloff in Italian bonds, with the Italian 10-year bond yield hitting a euro era high of 7.5 percent at one point on Wednesday.
Later on Thursday, the market will have to digest the Treasury's $16.0 billion 30-year bond auction, the last of three sales comprising this week's $72.0 billion refunding.
Copyright Reuters, 2011
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