SINGAPORE Aug 31 U.S. 10-year Treasuries held
steady in Asia on Friday, with investors waiting to see whether
Federal Reserve Chairman Ben Bernanke will hint at another round
of bond purchases when he speaks later in the day.
* Investors hope that Bernanke's speech at a symposium in
Jackson Hole, Wyoming will provide clues on the chances of the
Fed embarking on another asset buying programme, or quantitative
easing, and whether or not it will take such action next month.
* "We don't think he will say anything clear about further
monetary easing," said Shinichiro Kadota, a strategist for
Barclays Securities in Tokyo.
However, even if the Fed decides not to adopt a bond-buying
programme at its meeting in September, the U.S. central bank
will probably leave open the possibility of conducting such
stimulus in the future, he added.
* Ten-year Treasuries were little changed in price to yield
* The outlook for Treasuries in September will depend on
market factors such as U.S. jobs data, but over the medium term
Treasuries are likely to find support, said Barclays Securities'
Looming U.S. spending cuts and tax hikes known as the
"fiscal cliff" will probably be a supportive factor for
Treasuries, he said. In addition, demand for safe haven assets
is likely to persist and help limit the chances of a sustained
sell-off, Kadota said.