Thursday, March 29, 2012

Reuters: Market News: TREASURIES-Bonds steady in Asia, 10-yr yield near 2-week low

Reuters: Market News
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TREASURIES-Bonds steady in Asia, 10-yr yield near 2-week low
Mar 30th 2012, 05:09

TOKYO, March 30 | Fri Mar 30, 2012 1:09am EDT

TOKYO, March 30 (Reuters) - U.S. Treasuries moved little in Asia on Friday after a gain the previous day that took the 10-year bond yield to fresh two-week lows, with Japanese investors staying on sidelines ahead of their financial-year end, as well as key events next week.

* The 10-year notes yield stood at 2.166 percent , little changed from 2.159 percent in late U.S. trade. It fell to as low as 2.148 percent on Thursday.

* Treasuries extended their recent rally on Thursday on a growing perception that Federal Reserve Chairman Ben Bernanke is determined to keep easy policy.

* Some of the data on U.S. housing and manufacturing in recent weeks has been disappointing, further cementing the view that the Fed may not need to worry too much about acceleration in inflation.

* Yields on Spanish and Italian bonds have been edging up in the past few weeks, raising worries that the market euphoria after the European Central Bank's massive fund injections since last year may be fading.

* Japanese investors, one of the main buyers of Treasuries in Asia, were doing little trade as Friday is the final day in their current business year that ends on March 31.

* Some of them were also eager to see the minutes of the Federal Reserve's policy meeting held earlier this month, which is due on Tuesday, for clues on the thinking within the Fed on policy.

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