TOKYO, April 23 U.S. Treasuries prices stayed
firm in Asia on Tuesday after small gains the previous day, with
the 10-year yield stuck near four-month lows, on signs of an
economic slowdown and low inflation in the United States.
* The benchmark 10-year notes traded at a yield of 1.696
percent, little changed from late U.S. levels and
near four-month lows of 1.673 percent hit last Wednesday. It
fell about one basis point on Monday.
* Although Treasuries yields briefly rose on Monday as the
re-election of Italian President Giorgio Napolitano raised hopes
for the formation of a new government in Italy, reducing
safe-haven bids for bonds, concerns about the softening U.S.
economic picture overwhelmed the market in the end.
* A string of weak data, including payrolls earlier this
month, and a recent fall in commodity prices have fanned
expectations that U.S. inflation could slow further, killing
chances of the Federal Reserve tapering its bond buying program
* Last week, the government reported that U.S. consumer
prices fell in March for the first time in four months. In the
12 months through March, consumer prices rose just 1.5 percent,
sparking talk that the U.S. economy could face the threat of
* Some investors who had been cautious on Treasuries on the
view that the Fed could start winding up its bond buying some
time this year are rushing to buy Treasuries, according to
* "I expect the market's firm trend will continue until the
next payrolls data. But the previous payrolls data could have
been affected by bad weather, so if the next reading improves
then the market may regard the weakness in March as a temporary
one," said Hiroki Shimazu, senior market economist at SMBC Nikko