TOKYO, March 25 U.S. Treasuries dropped on
Monday on relief as Cyprus clinched a last-ditch deal with
international lenders for a 10 billion euro ($13 billion)
bailout hours before a deadline to avert a financial collapse on
the Mediterranean country.
* The yield on the 10-year notes rose to 1.963 percent
from 1.927 percent at the end of last week while
U.S. share futures gained about 0.4 percent.
* The latest deal on Cyprus included drastic measures such
as closing down the country's second largest bank and freezing
deposits above 100,000 euros, causing a far larger hit on large
account holders than a botched bank levy plan would have done.
* Still, investors took the news as positive for risk
sentiment, as they judged that risk of contagion to other euro
zone countries will be limited after Cyprus has avoided a
chaotic exit from the euro zone.
* "I think the market will put Cyprus behind it from now. It
is a small country, so the impact will be limited," said a
trader at a Japanese bank.
* German Finance Minister Wolfgang Schaeuble also said the
measures do not need an approval by the Cypriot parliament as
necessary legislation has been already passed.