TOKYO Oct 26 U.S. Treasuries gained in Asia on
Friday, taking their cue from broadly weaker Asian stocks on
concerns over corporate earnings.
* The MSCI index of Asia-Pacific shares outside Japan
skidded 1.1 percent, and was set for its largest
weekly decline in two months.
* The yields on 10-year notes fell to 1.796
percent from 1.828 percent in late U.S. trading on Thursday, and
remained solidly below their 200-day moving average, now at
* "Until 10-year yields decisively break above 1.8 percent,
we won't be convinced that the trend has changed," said a
fixed-income fund manager at a Japanese asset management firm.
* Yields on 30-year bonds slipped to 2.942
percent from 2.977 percent in late U.S. trading.
* On the data front, investors await the preliminary reading
of U.S. third-quarter gross domestic product later on Friday.
The annualised rate of growth is seen at 1.9 percent, picking up
from a 1.3 percent pace.
On Thursday, U.S. business investment showed signs of
stalling in September.
* On the supply side, the U.S. Treasury sold $29 billion in
seven-year notes on Thursday at a high yield of 1.267 percent.
The sale's bid-to-cover ratio was 2.56, the lowest in more than
three years, indicating lackluster demand.
* On Wednesday, the U.S. Federal Reserve stayed its hand as
expected, holding monetary policy steady after it launched a new
round of bond purchases last month.