SINGAPORE Oct 3 U.S. 10-year Treasuries pushed
higher on Wednesday after a survey showed that China's services
sector weakened sharply last month, reinforcing investor
concerns about global economic growth.
* Ten-year notes rose 5/32 in price to yield roughly 1.603
percent, down 2 basis points from late U.S. trade on
* China's official purchasing managers' index for the
services sector fell to 53.7 in September, the lowest point
since November 2010, according to the latest survey from the
National Bureau of Statistics.
* That survey result seemed to give a slight lift to
Treasuries, said a portfolio manager for a major Japanese bank
in Tokyo. He added, however, that trading volumes were light.
* The 10-year Treasury yield will probably trade in a range
of roughly 1.5 percent to 1.8 percent until the year-end, the
portfolio manager added.
"Although we need to keep an eye on the impact from monetary
policy, there have been many signs that point to an economic
slowdown," he said.
There is uncertainty about how effective the Federal
Reserve's aggressive monetary stimulus will be in supporting
economic growth, he added.
The 10-year Treasury yield had hit a four-month high of
1.894 percent in mid-September, as inflation expectations and
equities rose after the Fed unveiled an open-ended programme to
buy $40 billion in mortgage-backed securities each month.
Such moves have since faded, however, and the 10-year yield
is now down about 29 basis points from that peak.