LONDON Dec 14 U.S. T-note yields stabilised at
one-month highs on Friday after rising on supply pressure,
better-than-expected data and uncertainty over the long-term
impact of the Federal Reserve's latest move.
* The Treasury sold $13 billion of 30-year bonds on Thursday
at a high yield of 2.917 percent and demand was weaker than
average. Next week, it will offer two-year, five-year and
seven-year notes, as well as five-year Treasury
* Data on Thursday showed claims for unemployment benefits
were lower than expected in the last week.
* On Wednesday, the Federal Reserve announced a new round of
monetary stimulus and took the unprecedented step of indicating
interest rates would remain near zero until unemployment falls
to at least 6.5 percent.
* Ten-year T-note yields were last 0.7 basis
points lower on day at 1.7248 percent, having risen as high as
1.749 earlier, the highest in about a month.
* "The market is trading pretty soft, we had some supply as
well and people are digesting the flexibility the Fed is
affording itself ... It raises the question how long rates will
stay low," said Craig Collins, a trader at Bank of Montreal.
* "We're testing a key support level, the 200-day moving
average at (around) 1.75 percent ... It has brought some demand
and I think we need a new catalyst to breach that level," he
* The 200-day moving average was last at 1.7561 percent.