TREASURIES-U.S. 10-year notes slip but Cyprus worries likely to underpin
SINGAPORE, March 22
SINGAPORE, March 22 (Reuters) - U.S. 10-year Treasuries edged lower on Friday but were likely to be supported in the near term, as uncertainty over whether Cyprus will manage to secure an international bailout drive safe-haven bids.
* Ten-year Treasuries slipped 1/32 in price to yield about 1.918 percent, little changed from late U.S. trade on Thursday.
The 10-year yield has fallen roughly 7 basis points so far this week, as the turmoil in Cyprus rattled investors and helped lend support to safe haven Treasuries.
* The European Union gave Cyprus till Monday to raise the billions of euros it needs to secure an international bailout or face the collapse of its financial system that could push it out of the euro currency zone.
* In the end, Cyprus will probably find some type of solution that secures international aid and keeps the country in the euro zone, said a trader for a U.S. brokerage in Tokyo.
Such a solution, however, will probably only be reached at the last minute and in the meantime, Treasuries are likely to be supported going into the weekend as investors stay cautious, he said.
"Everybody will be a bit conservative. You're probably supposed to reduce your risk exposures and be long a little bit on Treasuries...because you don't know what's going to happen next week," the trader said.