| LONDON, April 9
LONDON, April 9 U.S. Treasuries were little
changed at high levels on Tuesday but could face some near-term
selling pressure as the market absorbs a bout of supply this
The U.S. Treasury Department will sell $32 billion in
three-year debt on Tuesday, $21 billion in 10-year notes on
Wednesday and $13 billion in 30-year bonds on Thursday.
Any dips are likely to attract more buyers, traders said,
with the market recently supported by the prospect of interest
from Japanese investors after the Bank of Japan announced
aggressive monetary easing steps last week.
Ten-year U.S. Treasury yields were broadly
steady at 1.75 percent. It hit its lowest since December at 1.68
percent on Friday, after U.S. jobs numbers were
The BOJ on Thursday announced extraordinary stimulus steps
to revive the world's third-largest economy, taking Japanese
yields to record and fueling expectations that investors will
seek returns elsewhere.
That view has benefited both the U.S. Treasury and euro zone
debt markets in recent days, limiting the downside for bond
Five-year U.S. Treasury yields were flat at 0.71
percent while the 30-year equivalent was 1.5 basis
points higher at 2.93 percent.
Later this week, investors will also study minutes from the
Federal Reserve's latest meeting for any signs officials are
pondering the exit of ultra-loose monetary policy.
Any such considerations will have been overshadowed by a
much weaker-than-expected non-farm payrolls report last week,
and market players will look at retail sales this Friday for the
latest gauge of health of the world's largest economy.
"(The focus is on) minutes which give us some insight into
the timing of any potential tapering of QE (quantitative easing)
and the retails sales figures which show whether the resilience
of consumers has persisted in March or not," Nick Stamenkovic,
bond strategist at RIA Capital Markets said.
"Until then, I think Treasuries are pretty much range-bound
and will be dictated by what happens in risk markets."