TOKYO Dec 10 U.S. Treasuries firmed in Asia on
Monday, with benchmark yields creeping back toward last week's
three-week low, as political rumblings in Italy and expectations
of more easing this week from the U.S. Federal Reserve offset
selling pressure ahead of this week's supply.
* Italy's political parties began maneuvering on Sunday
before elections expected in February as supporters of
technocrat Prime Minister Mario Monti tried to persuade him to
stay in politics and continue his economic reform agenda.
Monti's surprise announcement on Saturday that he intended
to resign after the approval of next year's budget heightened
uncertainty over his successor. The uncertainty is likely to
drive up Rome's borrowing costs as well as tensions in the euro
zone after months of calm in the bond market.
* A better-than-expected November jobs report did little to
alter expectations that the U.S. Federal Reserve is likely to
muster some additional bond buying plans at its two-day meeting
which will end on Wednesday. The Fed's "Operation Twist"
stimulus programme will expire this month.
* The Labor Department reported that 146,000 jobs were
created in November, confounding predictions of weakness. The
jobless rate fell to 7.7 percent, the lowest since December
2008, although it was largely due to fewer people looking for
* "The focus turned away from the U.S. economy and back
toward worries about Europe's debt situation, but it could turn
back to the U.S. quickly if there are developments in the
'fiscal cliff' talks," said a fixed-income fund manager at a
Japanese asset management firm.
* President Barack Obama met with Republican Speaker of the
House of Representatives John Boehner on Sunday to discuss
averting the "fiscal cliff" of $600 billion worth of tax
increases and spending cuts scheduled to take effect next year,
but no deal was reached.
* Yields on 10-year Treasuries were at 1.613
percent on Monday in Asian trade, down from 1.630 percent in
late U.S. trade on Friday.
On Thursday, benchmark yields fell as low as 1.564 percent.
* Yields on 30-year Treasuries fell to 2.801
percent from 2.816 percent on Friday.
* The Treasury will sell $32 billion in three-year notes on
Tuesday, $21 billion in 10-year notes on Wednesday and $13
billion in 30-year bonds on Thursday.