TREASURIES-U.S. 10-year yield edges up, hovers near 11-mth high

SINGAPORE, March 11 Sun Mar 10, 2013 11:33pm EDT

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SINGAPORE, March 11 (Reuters) - The U.S. 10-year Treasury yield edged higher in Asia on Monday and hovered within sight of an 11-month high hit on Friday after data showed U.S. job growth picked up more than expected in February.

* Ten-year notes fell 5/32 in price to yield 2.066 percent , up roughly 2 basis points from late U.S. trade on Friday. That day, the 10-year yield rose to as high as 2.087 percent, its highest level since last April.

* "I think the range is now basically around 1.9 percent to 2.2 percent," said a portfolio manager for a Japanese bank in Tokyo, referring to the outlook for the 10-year Treasury yield until the end of March.

Given the recent rise in Treasury market volatility, the chances of an overshoot beyond that range can't be ruled out, he said, adding that a focal point this week will be U.S. retail sales data due on Wednesday.

* U.S. employers added a greater-than-expected 236,000 workers to their payrolls in February and the jobless rate fell to a four-year low, offering a bright signal on the economy's health.

* Despite the improvement in the labour market, however, U.S. primary dealers expect the Federal Reserve to continue its programme of debt purchases through 2013 in an effort to prop up the economy, according to a Reuters poll conducted on Friday after the release of the jobs data.

All of 17 primary dealers - the large financial institutions that deal directly with the Fed - said they expect the central bank to continue buying debt until at least late this year, and 11 of the 17 expect the buying to continue into 2014.

Analysts have been speculating about when the Fed might wind up the asset-buying programme, although recent statements from Fed Chairman Ben Bernanke and Vice Chair Janet Yellen have indicated they are in no hurry to curtail it.

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