TOKYO: US Treasuries stabilised after having slid in the previous session as traders prepared for this week's sale of $99 billion US government debt.
The 10-year notes traded at yield of 1.806 percent , little changed from late US levels around 1.815 percent and not far from one-month high of 1.836 percent hit on Thursday.
Bonds had been under pressure in recent weeks on the back of fairly upbeat US economic data as well as hopes that Spain will be applying for an international aid to put its public finance back in order.
The market's immediate focus is on the sale of $35 billion of two-year notes on Tuesday, which will be followed by $35 billion of five-year notes auction on Wednesday and the offer of $29 billion of seven-year notes on Thursday.
Aside from the Treasuries auctions this week, investors were looking ahead to the Federal Reserve's policy meeting on Tuesday and Wednesday.
Investors believe the Fed is likely to hold off on fresh steps for now, opting to review the effects of the quantitative easing program, known as QE3, it launched last month. The US central bank is expected to keep a low profile in the last meeting before the Nov. 6 presidential election.
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