SINGAPORE, March 11 The U.S. 10-year Treasury
yield edged higher in Asia on Monday and hovered within sight of
an 11-month high hit on Friday after data showed U.S. job growth
picked up more than expected in February.
* Ten-year notes fell 5/32 in price to yield 2.066 percent
, up roughly 2 basis points from late U.S. trade on
Friday. That day, the 10-year yield rose to as high as 2.087
percent, its highest level since last April.
* "I think the range is now basically around 1.9 percent to
2.2 percent," said a portfolio manager for a Japanese bank in
Tokyo, referring to the outlook for the 10-year Treasury yield
until the end of March.
Given the recent rise in Treasury market volatility, the
chances of an overshoot beyond that range can't be ruled out, he
said, adding that a focal point this week will be U.S. retail
sales data due on Wednesday.
* U.S. employers added a greater-than-expected 236,000
workers to their payrolls in February and the jobless rate fell
to a four-year low, offering a bright signal on the economy's
* Despite the improvement in the labour market, however,
U.S. primary dealers expect the Federal Reserve to continue its
programme of debt purchases through 2013 in an effort to prop up
the economy, according to a Reuters poll conducted on Friday
after the release of the jobs data.
All of 17 primary dealers - the large financial institutions
that deal directly with the Fed - said they expect the central
bank to continue buying debt until at least late this year, and
11 of the 17 expect the buying to continue into 2014.
Analysts have been speculating about when the Fed might wind
up the asset-buying programme, although recent statements from
Fed Chairman Ben Bernanke and Vice Chair Janet Yellen have
indicated they are in no hurry to curtail it.