TOKYO: Benchmark US Treasuries inched lower in Asia on Monday ahead of new supply this week, but moves were slight as investors awaited further signals on whether the US Federal Reserve will take more stimulus steps.
The Treasury will offer $99 billion in new debt this week.
Markets will be closely watching a speech later this week by Fed Chairman Ben Bernanke at a central bank event in Jackson Hole, Wyoming for any signals on whether the Fed will announce a third round of quantitative easing, or QE3.
Some officials have said any new bond buying could be within an open-ended amount and time frame.
In a letter to a congressional oversight panel, Bernanke said, "There is scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery."
But a recent Reuters polls showed most economists do not expect the Fed to agree on a new round of bond purchases at its Sept. 12-13 policy meeting, with the chances for QE3 put at 45 percent.
Following the Jackson Hole meeting, there will be a US market holiday on Sept. 3 for Labor Day. Then on Sept. 6, the European Central Bank is scheduled to hold its next policy meeting.
The ECB is discussing yield-band targets under a new bond-buying program to let it shield its strategy and avoid speculators trying to cash in, central bank sources told Reuters on Friday.
"There was a correction last week from recent lows on a perception bonds were oversold and that more US easing is coming, although future direction depends to a large extent on what the Fed does," said Tomoaki Shishido, analyst at Nomura Securities.
The yields on 10-year notes stood at 1.683 percent, slightly up from 1.681 percent in late US trading on Friday.
Yields on 30-year Treasuries stood at 2.79 percent, steady from late US trading on Friday.
Friday's US economic data provided no clear signals about whether more stimulus steps are needed. New orders for durable goods surged in July, but declines in a gauge of planned business spending pointed to slowing growth in manufacturing.
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