TOKYO May 21 U.S. Treasuries were steady in
Asian trade on Tuesday, with the benchmark yield staying away
from a two-month peak it touched last week as investors awaited
this week's testimony from the Federal Reserve chief to discern
the direction of U.S. monetary policy.
* Fed Chairman Ben Bernanke will testify on the U.S. economy
on Wednesday to the congressional Joint Economic Committee, and
investors will be closely watching for any signals that the
central bank will taper its $85 billion in monthly bond
purchases later this year if the economic recovery continues.
Also Wednesday, the Fed will release the minutes of its last
* The yield on the 10-year notes stood at 1.965
percent on Tuesday, steady from late U.S. trade on Monday and
still shy of last week's high of 1.985 percent.
* The yield on 30-year notes stood at 3.175
percent, also steady from late U.S. trade.
* Japanese investors in particular have been following the
U.S. Treasuries market closely, as Japanese government bond
trading has been volatile since the Bank of Japan unveiled its
own massive monetary stimulus programme on April 4. The BOJ
pledged to double its bond holdings in two years to help the
government meet its 2 percent inflation target.
* "Treasuries have been less volatile than JGBs lately, and
any time the 10-year U.S. yield tops 2 percent, Japanese
investors start to take a look over there," said a fixed-income
fund manager at a Japanese asset management firm.
* Dallas Fed President Richard Fisher said on CNBC
television on Monday that the Fed's policies have boosted stocks
and helped wealthy people, but he questioned whether they helped
the broader U.S. economy.