TREASURIES-U.S. bonds edge up on caution over Greece

TOKYO | Fri Feb 10, 2012 12:43am EST

TOKYO Feb 10 (Reuters) - Treasury prices rose in Asia on Friday, as investors looked beyond Greece's initial success in securing a reform deal to uncertainties over its implementation.

* While Greece's leaders agreed on an austerity plan in order to secure further bailout funds to avoid a default, the country's lenders are seeking a parliamentary seal of approval before providing any aid.

* "There was progress on Greece's situation, but the outlook is still unclear," says Hiroki Shimazu, senior market economist at SMBC Nikko Securities.

* The 10-year Treasury yield fell to 2.01 percent , compared to 2.05 percent in U.S. trading on Thursday.

* The yield on 30-year Treasuries eased to 3.16 percent from 3.19 percent in U.S. trading, when it rose to its highest level since mid-November.

* The U.S. Treasury sold $16 billion in 30-year bonds on Thursday as part of this week's $72 billion quarterly refunding. The high yield was 3.24 percent, with 98.13 percent of bids awarded at the high.

* In addition to initial optimism over the Greek deal, an unexpected fall in U.S. jobless claims also lessened the appeal of fixed-income assets overnight, and added to speclation that the U.S. Federal Reserve will forego further stimulus steps as the economy improves faster than expected.

* Initial claims for state jobless benefits dropped 15,000 to 358,000, the Labor Department said. The four-week average of new filings hit its lowest level since April 2008.

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