TOKYO, July 2 U.S. Treasuries yields steadied in
Asia on Monday, taking a breather after a rally following an
agreement to let euro zone rescue funds be used to stabilise
debt markets and bolster its ailing banks.
* Benchmark 10-year Treasury notes traded barely
changed, with their yields at 1.64 percent, having jumped from
1.55 percent after the deal was struck on Friday. Thirty-year
bond yields were also almost unchanged at 2.74
* Surpassing market expectations, euro zone leaders agreed
on Friday to let their rescue fund inject aid directly into
stricken banks from next year and intervene in bond markets to
support troubled member states.
* But the rally in yields was capped amid ongoing worries
over the global economic slowdown with China reporting on Sunday
that its factory activity had slowed to seven-month lows in
* "There's still a long way to go and the sorts of things
that we would need to make us confident that Europe is no longer
a huge hindrance on markets is a credible plan to provide a
liquidity backstop for sovereigns and a big enough fund to
convincingly recapitalise banks across the region," said Andrew
Pease, Sydney-based chief investment strategist at Russell
Investments Asia Pacific.
* The big data release of the week will be the June nonfarm
payrolls report on Friday. Market expectations are for an anemic
rise of around 90,000 new jobs, leaving the unemployment rate
unchanged at 8.2 percent and creating the weakest quarter for
jobs growth since the middle of 2010.
* Treasury Department announces weekly sale of 4-week bills
at 1500 GMT and 3- and 6-month bills 1530 GMT.