TREASURIES-U.S. 10-year notes drop as dollar gains upper hand
TOKYO May 13 (Reuters) - U.S. 10-year Treasuries skidded in Asian trading on Monday, pushing benchmark yields to two-month highs, as the U.S. dollar rose to a fresh 4-1/2-year peak against the yen.
* The yen fell as low as 102.15 yen against the dollar, after the Group of Seven finance officials avoided censuring Japan's efforts to pull itself out of deflation, which have weakened its currency.
Instead, G7 officials gave a tacit nod on Saturday to Japan's bold policies.
* Fixed-income market sentiment also sagged as benchmark Japanese government bond futures plunged a full point to their lowest in a year, as the Nikkei stock average climbed toward a fresh 64-month high.
* "The trend for Treasuries this week could be weak, with focus on speeches by Fed officials," said Hiroki Shimazu, senior market economist at SMBC Nikko Securities.
Any suggestion that the U.S. central bank could begin to taper off its $85 billion per month in Treasury and asset purchases would put further pressure on the market, he said.
* The 10-year yield rose to 1.917 percent from 1.895 percent in late U.S. trade on Friday, levels not seen since late March.
* The yield on 30-year bonds rose to 3.130 percent from 3.090 percent in Friday's late U.S. trade.
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