TOKYO, June 18 U.S. Treasuries edged down in
Asia on Tuesday, as investors positioned for the possibility
that the U.S. Federal Reserve might not offer reassurance on its
policy intentions at its meeting later this week.
* The Fed will begin its regular two-day meeting later on
Tuesday, and investors will be watching closely for any clues
that the central bank is poised to slow its stimulus.
A Reuters poll of economists show most believe the Fed will
reduce its purchases by the end of 2013, and a significant
number expect the Fed to taper its purchases as early as
* The Fed now buys $85 billion of Treasuries and
mortgage-backed securities every month to keep long-term
interest rates low, and any hints about the end of its
asset-buying have put upward pressure on yields.
* "Every Fed meeting lately, every time [Fed chief Ben]
Bernanke speaks, it is like a hurdle that the market has to be
overcome," said a fixed-income fund manager at a Japanese asset
management firm in Tokyo.
"Nothing might happen, or something could emerge to push
yields up again," he said.
* The yield on 10-year U.S. notes stood at 2.181
percent, up from 2.171 percent in late U.S. trading on Monday.
Last month, the benchmark yield jumped 46 basis points, its
biggest one-month jump in nearly 2-1/2 years, according to
Reuters data, on growing anticipation that the Fed will pare its
* The yield on 30-year notes was at 3.352
percent, edging up from 3.348 percent in late U.S. trade.