TOKYO, April 11 U.S. Treasuries edged down in
Asia on Wednesday, taking a breather from an overnight rally but
supported by heightened concerns on Europe's debt woes and their
impact on global growth.
* Fears that some European countries will have trouble
servicing their debt resurfaced after Spanish 10-year bond
yields climbed to nearly 6 percent on Tuesday.
* Worries on Europe added to last week's weak U.S. jobs
report, which raised questions about the strength of the U.S.
economic recovery, and helped drive Treasury yields to four-week
lows on Tuesday.
* "The speed of the move (in Treasuries) was so quick. We
will be watching to see if Spanish yields stop rising today, and
taking our cue from that," said a market participant at a
"We thought that once Greece's bailout package was in place,
we could turn our attention to the progress of the U.S. recovery
and whether the Federal Reserve would further ease, but we have
returned to focusing on Europe, with its debt problems appearing
to be far from over."
* The yield on the 10-year notes rose to 2.00
percent from 1.984 percent in late U.S. trade, but still below
2.05 percent in Asian trade on Tuesday.
* The 30-year bond yield advanced to 3.15
percent from 3.13 percent in U.S. trading. It was at 3.20
percent in Asia on Tuesday.
* In a bullish signal for Treasuries, both 10-year and
30-year bond yields have pulled solidly below their 200-day
moving averages, now at 2.17 percent and 3.31 percent
* Later on Wednesday, the U.S. Treasury will sell $21
billion of reopened 10-year notes, followed by $13 billion of
reopened 30-year bonds on Thursday.
* A U.S. government auction of three-year Treasury notes on
Tuesday attracted the highest proportion of indirect bidders,
considered a measure of overseas interest, since August 2011,
suggesting that investors around the world have a strong
appetite for the perceived safe-haven of U.S. government debt.