TREASURIES-Yields near 9-month high on European hopes
TOKYO Jan 29 (Reuters) - U.S. Treasury yields rose near a nine-month high on Tuesday, extending their uptrend on signs of improvement in Europe and mildly upbeat U.S. economic data.
* The yield on 10-year notes rose to 1.985 percent , up slightly from 1.960 percent in late U.S. trade and near Monday's intraday high of 2.006 percent, which was its highest in nine months.
* "In a nutshell, Treasuries are sold as Europe is getting back to normal. In addition, there are concerns that the Fed may become more hawkish at the policy meeting (on Jan. 29-30), though such worries could prove wrong," said a trader at a Japanese bank.
* Treasuries came under pressure last week on news that European banks planned to repay more emergency loans than expected, suggesting the region's banking sector was on the mend and cooling demand for lower-risk debt.
* A stronger-than-expected reading for durable goods orders on Monday spurred further selling in Treasuries while investors were also pushing for price concessions ahead of auctions of $99 billion of U.S. government debt this week.
* The market is now looking to the Fed's policy meeting ending on Wednesday for any signs it is mulling an end to its latest bond purchase programme this year.
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