TREASURIES-Bonds retreat as yen slide vs dollar spurs selling
* Treasuries sold off overnight when yen moved through 100 * Talk of Fed tapering purchases weighs * Traders expect higher yields to draw buyers next week By Ellen Freilich NEW YORK, May 10 (Reuters) - U.S. Treasuries prices fell on Friday, leaving yields near five-week highs, after the dollar jumped to a 4-1/2-year high against the Japanese yen, breaking through the key 100-yen mark and spurring selling in longer-dated government debt. "Treasuries sold off overnight on the yen moving through 100 which produced selling of JGBs (Japanese government bonds). Treasuries, bunds and gilts sold off in sympathy with JGBs," said Thomas di Galoma, senior vice president and head of fixed income rates sales at E D & F Man Capital Markets in New York. The 30-year bond fell to 96-12/32 as its yield rose to 3.06 percent from 3 percent late on Thursday. The benchmark 10-year note fell 14/32 in price, its yield rising to 1.86 percent from 1.81 percent on Thursday. Investors are also trying to gauge when the Federal Reserve could pare its $85 billion per month in Treasury and mortgage-backed securities purchases, a bid to support the U.S. economy and boost employment. Weak economic data had quieted talk about the Fed tapering off those purchases, but the better-than-forecast April employment report released a week ago, upward revisions to payroll growth for prior months and lower numbers of Americans filing for unemployment insurance benefits have revived that conversation. Nevertheless, a well-received auction of 30-year bonds on Thursday indicated that higher yields would likely bring in new buyers next week, market participants said. "There's much more interest in buying from banks and insurers and other large market participants around these levels," said Jake Lowery, portfolio manager with ING U.S. Investment Management in Atlanta, Georgia. "We saw that come into play in the 10- and 30-year auctions this week and there's likely more buying to be done."