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TREASURIES-Bonds unchanged in Asia after dip on solid jobless data
TOKYO, March 15 |
TOKYO, March 15 (Reuters) - U.S. Treasuries were flat in Asia on Friday, stabilising after having dipped a little the previous day as solid jobless claims data brightened the U.S. economic outlook further.
* The 10-year notes yield stood at 2.035 percent , little changed from late U.S. levels. It rose as high as 2.0682 percent on Thursday after the initial claims data.
* The jobless claims dropped 10,000 to a seasonally adjusted 332,000 last week, despite economists' consensus forecast of a rise to 350,000. The closely-watched four-week moving average fell to a five-year low.
* Still, traders say losses in Treasuries were limited, even with Wall Street shares at record levels, as the Fed's massive bond buying leaves investors chasing fewer bonds available in the market.
* "I think a lot of people have short positions given optimism on the U.S. economy but they are not working very well," said at trader at a Japanese bank.
* Traders say 10-year cash notes will attract investor demand above two percent in yield while the 10-year notes futures has a strong support at 130. The futures last stood at 130-15/32, almost flat on day.
* The near-term focus is a raft of U.S. economic data due later in the day, including consumer prices at 1230 GMT, industrial output at 1315 GMT and consumer sentiment at 1355 GMT.
* Economists see annual consumer price inflation rising to 1.9 percent in February from 1.6 percent. They also expect a slight improvement in both output and consumer prices from the previous month.
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