TOKYO, June 25 U.S. Treasuries prices held
steady in Asia on Tuesday after bouncing back overnight with the
benchmark 10-year yield falling from a near two-year high,
although investors remained cautious about the Federal Reserve's
plan to start rolling back its stimulus.
* The yield on 10-year notes stood at 2.5442
percent, holding steady from U.S. trade of 2.54 percent. The
benchmark yield rose as high as 2.667 percent, the highest since
August 2011, in overnight U.S. trade.
* "We think eventually U.S. yields may go up more. But at
this point the move was so rapid from 2.2 percent to 2.6 percent
that it's getting to a point maybe that we are going to be
stabilising from here. In my opinion, it may go lower depending
on the situation," said Tadashi Matsukawa, head of Japan fixed
income at PineBridge Investments.
* Fed Chairman Bernanke rattled investors last week when he
said the U.S. central bank may reduce its bond purchases of $85
billion a month in Treasuries and mortgage-backed securities
starting later this year.
* "We are not going to go straight up to 3 percent, or 4
percent," Matsukawa said. "The economy is not very strong yet.
That's not only China, not only emerging markets but globally
Europe, Japan and U.S. itself. Inflation is not accelerating at
all. If (U.S.) interest rates continue to rise, it will kill the
* The yield on 30-year notes was at 3.5538
percent, compared with 3.56 percent in U.S. trade on Monday.