TOKYO Dec 13 U.S. Treasuries fell in Asia on
Thursday, pushing up benchmark yields to their highest in a
month, after the U.S. Federal Reserve announced a new bond
buying programme to stimulate the economy.
* The Fed said it will buy $45 billion in Treasuries each
month on top of the $40 billion per month of mortgage-backed
bonds it started buying in September. It will expand its
purchases to five-year notes from the current seven-, 10- and
It indicated interest rates would remain near zero until
unemployment falls to 6.5 percent.
* With the Fed's policy decision out of the way, investors'
attention focused on the stalemate in Washington over how to
avert $600 billion worth of tax increases and reduced outlays
that would take effect next year.
On Wednesday, Fed Chairman Ben Bernanke warned of damage
from the "fiscal cliff" and U.S. House of Representatives
Speaker John Boehner said "serious differences" remain with
President Barack Obama.
* "An agreement next week would put further upward pressure
on yields," said Tomoaki Shishido, fixed income analyst at
* Yields on 10-year Treasuries rose to 1.716
percent on Thursday in Asian trade, their highest since early
November, compared to 1.685 percent in late U.S. trade on
* Yields on 30-year Treasuries rose to 2.915
percent from 2.880 percent on Wednesday.
* Yields on five-year notes rose to 0.663 from
0.643 percent late Wednesday.
* On the supply side, the Treasury on Thursday will offer
$13 billion of 30-year bonds. Next week, it will sell two-,
five-and seven-year notes, as well as five-year Treasury
Wednesday's sale of $21 billion of 10-year notes before the
Fed's announcement met strong demand, with the notes selling at
a high yield of 1.65 percent, around 2 basis points lower than
where they were trading before the auction. On Tuesday, the
Treasury sold $32 billion of three-year notes.