TOKYO Dec 5 U.S. 10-year Treasuries prices were
steady in Asian trade on Wednesday, as U.S. fiscal talks dragged
* President Barack Obama proposed on Tuesday that tax rates
could be lowered in 2013 with a broad U.S. tax code overhaul,
but maintained rates for the wealthiest must
Republican leaders kicked two of the most conservative
members off the House Budget Committee on Tuesday, which was
perceived as a move to advance a deal with Democrats to cut the
* "The U.S. talks aren't showing new progress, and until
some conclusion is reached, yields will stick to their recent
ranges," said a fixed-income fund manager at a Japanese asset
Benchmark yields lost seven basis points last month, their
largest monthly fall since July, as fears about the fiscal
impasse added to the appeal of bonds.
* Treasuries prices held steady despite a rise in risk
appetite across the region as Chinese equities surged. New
Communist Party chief Xi Jinping said late on Tuesday that the
government aimed to stabilise exports and make policies more
targeted and effective.
* Yields on 10-year Treasuries inched down to
1.614 percent on Wednesday in Asian trade from 1.615 percent in
late U.S. trade on Tuesday.
* On Tuesday, primary dealers submitted a smaller-than-usual
4.047 billion in bonds for the U.S. central bank to buy. The
Federal Reserve's subsequent $1.837 billion purchase of
Treasuries maturing February 2036 to November 2042 caused these
dealers, who do business directly with the Fed, to scramble for
longer-dated issues on the open market, traders and analysts
* Yields on 30-year Treasuries rose slightly to
2.793 percent from 2.786 percent on Tuesday.
* The Fed has been buying a combined $85 billion in
Treasuries and mortgage-backed securities a month, with the
latter as part of its "Operation Twist" stimulus program that
expires at the end of this month.
Central bank policy-makers will meet next Tuesday and
Wednesday, and are expected to consider whether to pursue
further bond purchases.