SINGAPORE Nov 9 U.S. 10-year Treasuries edged
lower on Friday, taking a breather from a rally triggered by
worries about the looming fiscal cliff and renewed concerns
about the euro zone's sovereign debt crisis.
* Ten-year Treasuries slipped about 2/32 in price to yield
1.627 percent, up 1 basis point from late U.S. trade
Still, even accounting for Friday's move, the 10-year yield
is down about 9 basis points for the week.
* Treasuries have rallied the past few days as the market's
focus turned to the fiscal cliff, looming tax increases and
government spending cuts that would go into effect early next
year, unless Congress acts to prevent them.
President Barack Obama's election victory on Tuesday has
also supported bonds as it reinforced market expectations that
monetary policy could stay loose for years amid moderate
Uncertainty over when international lenders might decide to
release the next tranche of aid for Greece has also helped stoke
demand for safe haven Treasuries.
* "I think market players are starting to think that levels
around 1.5 percent (for 10-year yields) might be possible," said
Satoshi Okagawa, senior global markets analyst for Sumitomo
Mitsui Banking Corporation in Singapore.
Such levels would seem pretty low, however, when taking into
account the U.S. economy's potential growth rate, he added.
The 10-year yield dropped below 1.5 percent earlier this
year, but only briefly. It poked below that threshold in early
June and again in July and August, hitting a record low of near
1.38 percent in late July, when worries about the euro zone's
debt crisis intensified.