SINGAPORE, April 4 The U.S. 10-year Treasury
yield hovered near a three-month low in Asia on Thursday, after
tepid private sector jobs data dampened hopes for strong numbers
from Friday's labour market report.
* Ten-year notes rose 3/32 in price to yield about 1.806
percent. The 10-year yield slipped roughly 1 basis
point from late U.S. trade, approaching Wednesday's low near
1.797 percent, its lowest level since early January.
* The 10-year yield fell after payroll processor ADP
reported on Wednesday that U.S. private-sector employers added
158,000 jobs in March, fewer than expected. Separately, the
Institute for Supply Management reported that growth in the U.S.
services sector slowed in March to the lowest level in seven
* The recent drop in the 10-year Treasury yield might stall
near current levels of around 1.8 percent, as long as there is
no severe increase in investor worries about the euro zone's
debt crisis, and if U.S. jobs data on Friday shows a rise in
nonfarm payrolls of around 200,000, said Hiroki Shimazu, bond
strategist for SMBC Nikko Securities in Tokyo.
U.S. jobs data on Friday is expected to show a rise in
nonfarm payrolls of 200,000 for March, according to a Reuters
poll that was conducted before the release of the ADP survey.
"That would suggest that the pace of improvement in the
labour market will probably continue at a pace faster than what
was seen last year," Shimazu said.
In addition, while there are lingering worries about the
euro zone including political uncertainty in Italy, the European
Central Bank's pledge to buy struggling euro zone members' bonds
if necessary under its still unused Outright Monetary
Transactions (OMT) programme, will probably help keep financial
markets relatively calm, Shimazu added.