SINGAPORE Nov 21 U.S. 10-year Treasuries
struggled to regain ground in Asia on Wednesday after retreating
the previous day on optimism that lawmakers will reach a deal to
avoid a fiscal crisis that could dent economic growth.
* Ten-year notes held steady in price with a yield of about
1.668 percent. The 10-year yield had hit a two-month
low of 1.556 percent last Friday, but has risen since then.
* Treasuries have come under pressure this week after
leading U.S. legislators expressed confidence on Sunday that
they could reach a deal to avert the "fiscal cliff" of spending
cuts and tax hikes due to take effect in early 2013.
Data showing that U.S. housing starts rose to their highest
rate in more than four years in October added to a sell-off in
Treasuries on Tuesday, when the 10-year yield rose about 5 basis
* Market positioning at this point does not seem tilted too
heavily toward being long Treasuries, suggesting that the
potential for any long liquidation and further weakness in
Treasuries might be limited in the near-term, said a trader for
a U.S. brokerage in Tokyo.
"I don't think that dips from here will become that big,"
the trader said.