TOKYO, June 21 U.S. Treasuries steadied in Asia
on Friday, with the benchmark yield holding below a nearly
two-year high hit after Federal Reserve Chairman Ben Bernanke
signaled earlier this week that the U.S. central bank could
begin scaling back its stimulus.
* The yield on 10-year notes stood at 2.433 percent
after it rose as high as 2.471 percent on Thursday,
its highest intraday level since August 2011, according to
* Bond market sentiment was also underpinned by fading fears
of a broader banking crisis in China, on speculation the central
bank had quietly added funds to the market. Chinese cash rates
spiked as high as 25 percent for a second day on Friday before
* "The tight situation in China has no direct relation to
the Fed and appears to be due to the Chinese government trying
to rein in domestic credit, but it scared some investors," said
a fixed-income fund manager at a Japanese trust bank in Tokyo.
"Many people are on the edge this week after the Fed," he
* Bernanke said on Wednesday that the economy is improving
enough for the Fed to begin scaling back its monthly $85 billion
in asset purchases.
* The yield on 30-year notes was at 3.524
percent, down from 3.548 percent struck in U.S. trade, its
highest since early September 2011.