TOKYO: US Treasuries slipped slightly in Asia on Thursday, but did not stray far from overnight levels as investors waited for the outcome of a European Central Bank meeting after the US Federal Reserve stopped short of offering fresh stimulus.
A German newspaper reported that ECB President Mario Draghi would on Thursday unveil a plan using both the ECB and the European Stability Mechanism to buy bonds from Spain or Italy.
"It's difficult for Treasuries to move much in Asian time ahead of the ECB," said Hiroki Shimazu, an economist at SMBC Nikko Securities in Tokyo.
"They are facing some selling as Japanese stocks rise, but they're basically trading sideways ahead of the ECB outcome later in the session."
Japan's Nikkei stock average rose 0.1 percent, but MSCI's broadest index of Asia-Pacific shares outside Japan skidded 0.4 percent.
The Fed took no new monetary steps at its two-day policy meeting that concluded on Wednesday. It was more downbeat on the economy, however, keeping alive hopes for more bond buying by the central bank.
The yield on 10-year notes edged up slightly to 1.525 percent on Thursday from 1.515 percent in late US trade on Wednesday and from 1.479 percent in Asia.
The yield on 30-year bonds stood at 2.593 percent, up from 2.588 percent in Wednesday's late US trade and 2.557 percent in Asia.
The Treasury Department will next week sell a combined $72 billion in coupon-bearing debt as part of its August refunding. That will include sales of $32 billion in three-year notes ; $24 billion in 10-year debt and $16 billion in 30-year bonds.
The sales are expected to raise $17 billion in new money, to be used to refund investors on $54.2 billion worth of maturing government debt.
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