TOKYO Nov 29 U.S. 10-year Treasuries prices
fell on Thursday, taking their cue from rising equities on
cautious hope that the U.S. "fiscal cliff" impasse over tax
hikes and spending cuts will be resolved in the coming weeks.
* In U.S. trading on Wednesday, bond prices pulled back off
session highs after U.S. House of Representatives Speaker John
Boehner said he was "optimistic" on reaching a budget deal
before the end of the year to avoid a crisis. President Barack
Obama later said he hoped he and Congress can reach agreement
* Investors are worried Washington might fail to avert $600
billion worth of tax increases and reduced outlays scheduled to
automatically take effect next year, and that the plan's
implementation would help drag the U.S. economy back into a
* MSCI's broadest index of Asia-Pacific shares outside
Japan rallied 1.1 percent, undermining the
appeal of fixed-income assets.
* "For now, rising risk appetite is lifting stocks and
weighing on bonds, though a bond sell-off is unlikely as long as
the 'fiscal cliff' issue remains unresolved," said a
fixed-income fund manager at a Japanese asset management firm.
"Month-end buying will also support Treasuries prices for
the rest of this week," he added.
* Yields on 10-year Treasuries rose to 1.643
percent on Thursday in Asian trade from 1.623 percent in late
U.S. trade on Wednesday.
* Yields on 30-year Treasuries rose to 2.80
percent from 2.789 percent on Wednesday.
* On the supply side, the Treasury Department will offer
$29 billion of seven-year debt later on Thursday, as part of its
total of $99 billion this week.
On Wednesday, it sold $35 billion in five-year notes at a
high yield of 0.641 percent, and a $35 billion sale of two-year
notes on Tuesday met record demand.
* On Wednesday, the Federal Reserve made two separate
purchases of Treasuries under its "Operation Twist" programme
aimed at lowering long-term interest rates to help the economy.
The Fed bought a total of $1.85 billion of Treasuries
maturing in February 2036 through November 2042 in a morning
operation, and then purchased $4.57 billion of Treasuries
maturing November 2018 through November 2020 on Wednesday