Business & Finance
Bonds supported by lingering fears on Europe
TOKYO : US Treasuries stayed almost flat in Asia on Tuesday, supported by lingering concerns on the debt and banking
1 min
By
The price of 10-year T-notes eased 1.5/32 for a yield of 1.954 percent, compared to 1.947 percent in late US trade.
It fell to a fresh six-decade low of 1.88 percent on Monday before a report that Italy had asked China to buy Italian debt prompted an easing in safety bids.
Still, growing fears that a Greek default could hurt heavily exposed European banks continued to underpin the market.
Against this backdrop, market players are bullish on a $21 billion 10-year note sale later on Tuesday.
Expectations that the Federal Reserve is likely to increase its purchases of long-dated Treasuries to help the US economy will likely add bids.
Copyright Reuters, 2011