TOKYO May 7 Treasury prices gained in Asia on
Monday, as the outcome of elections in Greece and France raised
concerns about the progress of European austerity steps and
fueled a rally ignited by downbeat U.S. employment data.
* Greek voters rejected pro-bailout policies, putting the
country's future in the euro zone at risk and threatening to
revive Europe's debt crisis, while Socialist Francois Hollande
won a presidential election in France and promised to start a
pushback against austerity policies.
* Ahead of the weekend elections, disappointing U.S.
employment data on Friday provided more evidence the world's
largest economy is slowing and sent the yield on the benchmark
U.S. 10-year note below key chart resistance at 1.90 percent.
* "The U.S. employment data helped bonds gain, but going
forward this week, investors will mainly focus on European
concerns," said Tomoaki Shishido, bond analyst at Nomura
"But although the Greek election outcome raises worries, it
will take some time to play out, so there might not be an
immediate impact on markets," he added.
* The yield on 10-year Treasuries slumped to
1.83 percent, down from 1.88 percent in late U.S. trade and
sharply below 1.95 percent in Asian trading on Friday.
* The 30-year bond yield was at 3.03 percent,
down from 3.09 in late U.S. trading and well below 3.15 percent
in Asia on Friday.
* On the supply side, the U.S. Treasury will auction $72
billion in coupon-bearing debt this week.