TOKYO: US Treasuries were pressured, bolstering yields, as better-than-expected Chinese data in Asia trade on Tuesday gave equities markets a lift and pushed fears about the euro zone debt crisis out of the spotlight for now.
The 10-year Treasury yield was at 1.88 percent, edging up from 1.87 percent in late North American trade on Friday. The US debt market was closed on Monday for a federal holiday honouring Dr. Martin Luther King, Jr.
The 30-year Treasury yield was at 2.92 percent, slightly up from 2.91 percent in late North American trade on Friday.
China's economy grew at its weakest pace in 2-1/2 years in the fourth quarter as gross domestic product slowed to an annual rate of 8.9 percent, but the reading came in above market expectations for growth of 8.7 percent.
"Today is a sneaky risk-on day," said a trader at a European bank. "But Asian traders aren't fully convinced, until it's verified later" by evidence of improved risk appetite in North America, he added.
Treasuries rallied on Friday on safe-haven buying after warnings that Standard & Poor's would downgrade euro-zone sovereign debt ratings, a move that happened late Friday. On Monday, S&P also cut its credit rating of the European Financial Stability Facility, the euro zone's rescue fund, by one notch to AA+.
In focus in Europe this week are talks between Greece and its private sector creditors on a debt swap deal, which broke down last week but were expected to resume on Wednesday. Some 14.5 billion euros of bond redemptions fall due in late March.
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