TREASURIES-Extend losses in Asia on supply worries

Fri Oct 23, 2009 2:08am EDT
 
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TOKYO, Oct 23 (Reuters) - U.S. Treasuries slipped in Asia on Friday extending the previous day's losses on concerns about the record amount of government debt that is set to be auctioned next week.

* Asian stock markets rose on Friday on the back of upbeat earnings from the United States and Asia with U.S. stock futures gaining SPc1, indicating a potential strong opening in New York later in the day and reducing bids for safe-haven debt.

* T-note futures slid 7.5/32 to 117-23.5/32 SPc1. Benchmark 10-year notes fell 7/32 in price to yield 3.452 percent US10YT=RR, up 3 basis points from late U.S. trade.

* Thirty-year bonds fell 11/32 in price to yield 4.266 percent US30YT=RR, up 2 basis points. The two-year slipped 3/32 in price to yield 0.997 percent US2YT=RR, up 5 basis points.

* The Federal Reserve's focus remains on an accommodative interest rate policy, given the tremendous amount of slack in the U.S. economy, Chicago Federal Reserve President Charles Evans said on Thursday. [ID:nWEN5239][nN2253855]

* But the market was unmoved by Evans' remarks as investors believe the majority of Fed officials share similar views that the U.S. central bank is in no rush to pull back its extensive economic support measures, although some on the Fed have voiced concerns that a long period of very low interest rates poses a risk of igniting inflation.

* Investors will listen closely to Federal Reserve Ben Bernanke who is scheduled to give a speech at 1230 GMT. Comments from Fed Vice Chairman Donald Kohn, who will participate in a panel discussion at the Boston Fed conference later in the day, will also draw market attention.

Figures on existing home sales for September will be released at 1400 GMT.

* The Treasury on Thursday announced that a record volume of $123 billion worth of bond auctions will take place next week, surpassing the previous weekly record of $115 billion seen in July. [ID:nN22432166] (Editing by Joseph Radford)

 

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