TOKYO: US 10-year Treasuries edged up in Asia on Wednesday, recouping some of the losses sustained the day before, after Fed Chairman Ben Bernanke said the central bank was ready to respond to a slowing economy, but did not provide details on future actions.
The absence of fresh clues on when the Federal Reserve could start a third round of large-scale bond purchases disappointed some traders who had earlier speculated more easing may be on the cards soon.
As a result, investors in Asia shied away from riskier assets on Wednesday and ten-year note yields fell to 1.49 percent, coming off 1.51 percent hit in late New York trading.
On Monday, the yields matched their record lows of 1.44 percent after data showed that US retail sales fell in June for the third straight month, the longest streak of declines since 2008 when the country was mired in recession.
Thirty-year bond yields dropped to 2.588 percent, after rising to around 2.60 after Bernanke's speech. On Monday, they fell to as low as 2.517 percent, less than a basis point higher than the debt's record low yield.
Bernanke will address the House Financial Services Committee at 14:00 GMT, following his testimony to the US Senate Banking Committee on Tuesday. Federal Reserve releases the Beige Book of economic conditions at 1800 GMT.
The Fed will buy as much as $5.50 billion in notes due between 2020 and 2022 on Wednesday and up to $2 billion in bonds due from 2036 to 2042 on Thursday as part of its Operation Twist program, designed to lower borrowing rates to stimulate the economy.
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