TOKYO Oct 29 U.S. Treasuries edged up slightly
in Asia on Monday, extending their big gains at the end of last
week as disappointing corporate earnings offset
better-than-expected GDP data.
* The yield on the 10-year notes dropped to
1.736 percent at one point -- its lowest in 12 days -- from
1.749 percent in late U.S. trade on Friday.
* The yield fell sharply on Friday as earnings results from
Apple and Amazon undershot expectations. In
Europe, Renault, Saint Gobain, Gucci
and Publicis weighed in with gloomy earnings
* The Commerce Department on Friday reported U.S. economic
growth accelerated in the third quarter to a 2 percent annual
growth rate, slightly better than economists' forecast of 1.9
* But a sizable portion of that expansion came from
government spending, and the outlook remained murky due to
uncertainty over the impact of the so-called "fiscal cliff" of
tax increases and government spending cuts set to kick in at the
beginning of next year.
* Another source of big uncertainty is a neck-and-neck
presidential race, with many investors expecting a victory by
Republican Mitt Romney to boost U.S. bond yields, possibly to
above two percent in the 10-year yield.
* Republicans' opposition to the Federal Reserve's
aggressive easing means market players will have to rethink
their assumption of low policy rates until mid-2015 if he wins
while some market players also think investors may shift funds
to stocks from bonds on hopes of pro-business policies.
* Bond trading looks set to slow on Monday also as Hurricane
Sandy, which could become the largest storm ever to hit the
United States, is set to bring much of the East Coast, including
New York, to a virtual standstill.
* Wall Street firms were preparing contingency plans while
NYSE said it will close its physical floor operations on Monday,
moving share trading to fully electronic exchange.