TOKYO, April 27 Treasuries prices rose in Asia
on Friday, after Standard & Poor's cut of Spain's credit ratings
added to fears about the ability of some European countries to
continue financing their debt.
* S&P's cut Spain's ratings by two notches to BBB-plus due
to its deteriorating public finances.
* Later on Friday, the U.S. government will release
preliminary data on Q1 gross domestic product, which is forecast
to show growth at an annualized rate of 2.5 percent, slower than
the 3.0 percent in the final last quarter of 2011.
* U.S. data will be in focus after the Fed held policy
steady on Wednesday and reiterated its expectation that interest
rates would not rise until late 2014. Chairman Ben Bernanke said
the central bank was prepared to do more to aid the U.S. economy
if necessary, though his comments did not signal that a third
round of quantitative easing was on the way anytime soon.
* "There are still some expectations of more quantitative
easing priced into the market, and yields might not go higher
unless that changes," said Hiroki Shimazu, an economist in Tokyo
at SMBC Nikko Securities
* The yield on the 10-year notes stood at 1.91
percent, down from 1.95 percent in late U.S. trade and from 1.98
percent in Asian trade on Thursday.
* The 30-year bond yield stood at 3.09 percent,
down from 3.12 percent in late U.S. trading and from 3.15
percent in Asia on Thursday.
* Underpinning demand for fixed-income assets, U.S. data on
Thursday showed initial claims for jobless benefits dropped by
far less than expected in the latest week.
But other data painted a brighter picture, with U.S.
contracts to purchase previously owned homes close to a two-year
high in March.
* The key U.S. nonfarm payrolls report data for May will be
released on Friday, May 4, which is a holiday in Japan. Japan's
markets will be closed Monday, Thursday and Friday for Golden
* On the supply side, the U.S. Treasury Department on
Thursday completed this week's $99 billion in coupon-bearing
sales, with a smooth auction of $29 billion in new seven-year
notes. The lowest yield was a record low, at