TOKYO: US 10-year Treasury bond yields stood near one-month highs on Monday, after better-than-expected jobs data soothed worries over sluggish growth. Rising expectations of European action to tackle the debt crisis also dampened demand for the safe-haven US debt.
Ten-year Treasuries were steady in price with a yield of roughly 1.568 percent in Asian trade, not far from the post-jobs data highs at 1.592. The peak marked the highest level the yields reached since July 6.
US employers hired the most workers in five months in July, but an increase in the jobless rate to 8.3 percent kept prospects of further monetary stimulus from the Federal Reserve on the table.
Bonds were also out of favour as traders looked ahead to next month for the European Central Bank to help lower high borrowing costs for Spain and Italy, as initial disappointment has faded over the bank's failure to act last Thursday.
Austrian Chancellor Werner Faymann thinks German Chancellor Angela Merkel will drop opposition to measures such as giving the euro zone's permanent bailout fund a banking licence if that is what is needed to save the euro, he told a newspaper.
Treasury Department announces weekly sale of 4-week bills at 1500 GMT and sells 3- and 6-month bills at 1530 GMT.
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