TOKYO: US Treasuries prices steadied in Asia on Tuesday after an overnight rally sparked by worries about the strength of measures adopted by European leaders to fight the debt crisis there.
The Treasury is selling $177 billion in seven auctions spread over eight trading days. This began on Monday with $32 billion in three-year notes, and will be followed by $21 billion in 10-year notes on Tuesday and $13 billion in 30-year bonds on Wednesday.
Benchmark 10-year notes were down 4/32 in price to yield 2.03 percent. Thirty-year bond yields inched higher to 3.07 percent.
Federal Reserve policy-setting Federal Open Market Committee announces its decision after a one-day meeting at 1915 GMT. In a Reuters poll, primary dealers expect the Fed to leave the Fed funds rate in the current 0.0 percent to 0.25 percent range. Some analysts expect the Fed to wait until a two-day meeting on Jan. 24-25 before launching any new initiatives.
The fear of contagion from the euro zone's debt woes continued after the two-day European Union summit left investors uncertain about the details and timing of any steps to stem the crisis. The continuing uncertainty will keep safe-haven Treasuries from being sold off much even as the market absorbs the new supply, market participants said.
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