TOKYO May 13 U.S. 10-year Treasuries skidded in
Asian trading on Monday, pushing benchmark yields to two-month
highs, as the U.S. dollar rose to a fresh 4-1/2-year peak
against the yen.
* The yen fell as low as 102.15 yen against the
dollar, after the Group of Seven finance officials avoided
censuring Japan's efforts to pull itself out of deflation, which
have weakened its currency.
Instead, G7 officials gave a tacit nod on Saturday to
Japan's bold policies.
* Fixed-income market sentiment also sagged as benchmark
Japanese government bond futures plunged a full point
to their lowest in a year, as the Nikkei stock average
climbed toward a fresh 64-month high.
* "The trend for Treasuries this week could be weak, with
focus on speeches by Fed officials," said Hiroki Shimazu, senior
market economist at SMBC Nikko Securities.
Any suggestion that the U.S. central bank could begin to
taper off its $85 billion per month in Treasury and asset
purchases would put further pressure on the market, he said.
* The 10-year yield rose to 1.917 percent from
1.895 percent in late U.S. trade on Friday, levels not seen
since late March.
* The yield on 30-year bonds rose to 3.130
percent from 3.090 percent in Friday's late U.S. trade.