TOKYO Nov 20 U.S. Treasuries were steady in
Asia on Tuesday after posting small losses the previous day on
optimism that U.S lawmakers may reach a deal to avert the
"fiscal cliff", which threatens to push the U.S. economy into a
* Leading U.S. lawmakers expressed confidence on Sunday that
they could reach a deal to avert the "fiscal cliff" even as they
laid down markers on taxes and spending that may make any
agreement more difficult.
* The 10-year notes yielded 1.611 percent,
almost unchanged from late U.S. levels but off its 2 1/2-month
low of 1.556 percent hit on Friday.
* Optimism on the budget talk in Washington lifted U.S.
shares on Monday, with the S&P 500 index rising 2.0
percent from Friday's four-month low.
* The market hardly showed any response to Moody's
downgrading of France's triple-A rating. "I don't think that's
going to affect U.S markets much," said a trader at a Japanese
* The euro dipped about 0.3 percent on the news but
U.S. stock futures have shown muted response so
* The immediate focus is on a speech by Federal Reserve
Chairman Ben Bernanke in New York at 1215 local time (1715 GMT).
Treasuries have been supported by speculation that the Fed is
likely to unveil a new stimulus in December, when its Operation
Twist is set to expire.