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TREASURIES-Steady in Asia, wary of jobs data and supply

Thu Nov 5, 2009 2:09am EST
 TOKYO, Nov 5 (Reuters) - U.S. Treasury debt prices firmed
slightly on Thursday after falling the previous day on news of
the next quarterly refunding, although yields remained near the
week's highs as the market readied for jobs data, then supply.
 * The Treasury auctions $81 billion next week, a record in
quarterly refunding, with $40 billion in three-year notes to be
sold on Monday, $25 billion in 10-year notes on Tuesday and $16
billion in 30-year bonds on Thursday.
 * But first the market will weather jobs data, with the
October payrolls report due on Friday and likely to be
scrutinised for signs of stabilisation in the jobs market.
Weekly jobless claims due at 1330 GMT on Thursday are forecast
to show 523,000 new filings vs 530,000 in the prior week.
 * November 10-year futures TYv1 rose 5/32 to 117-31.5/32
after dipping to their lowest in a week on Wednesday.
 * Share markets around the region fell with Japanese stocks
.N225 down 1.3 percent and the MSCI Asia index excluding
Japan .MIAPJ0000PUS down nearly 1 percent on the day.
 * The benchmark 10-year note US10YT=RR rose 1.5/32 in
price to yield 3.514 percent, down 1 basis point from late U.S.
levels.
 * The 30-year bond US30YT=RR fell 2.5/32 in price to
yield 4.399 percent, up nearly half a basis point from late
U.S. trade.
 * Traders said dealers attention was focused on readying
their books first for the payrolls and then supply, with the
short end expected to find more support than the long end after
the Fed reiterated its pledge to keep rates low for an extended
period on Wednesday. [ID:nN04453484]
 * The spread between yields on the two-year and 10-year
notes has widened this week to about 261 basis points, taking
the yield curve to its steepest since late July.
 (Editing by Jan Dahinten)






















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