TOKYO Dec 14 U.S. Treasuries slipped in Asia on
Friday, building on their U.S. losses as risk appetites improved
on a Chinese manufacturing survey that raised optimism about
that country's economy.
* The HSBC flash purchasing managers' index for December
rose to 50.9, a 14-month high and the fifth straight monthly
gain. Rises in areas such as new orders and employment
underlined a brighter outlook for the economy in the coming
* "There are many reason to sell Treasuries, and not so many
reasons to buy them, except for uncertainty that still surrounds
the U.S. fiscal talks," said Hiroki Shimazu, an economist at
SMBC Nikko Securities in Tokyo.
* President Barack Obama and House of Representatives
Speaker John Boehner met on Thursday to attempt to resolve the
stalemate over how to avoid the "fiscal cliff" of steep tax
hikes and spending cuts.
* U.S. debt prices slid on Thursday after an auction of 30
year bonds met lacklustre demand.
On Wednesday, the U.S. Federal Reserve 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,
and that it will expand its purchases to five-year notes from
the current seven-, 10- and 30-year Treasuries.
Data on Thursday showing lower-than-expected claims for
unemployment benefits also pressured debt prices.
* Yields on 10-year Treasuries rose to 1.736
percent on Friday in Asian trade, from 1.720 percent in late
U.S. trade on Thursday.
* Yields on 30-year Treasuries rose to 2.913
percent from 2.899 percent on Thursday, while five-year yields
rose to 0.700 from 0.681 percent.
* On the supply side next week, the Treasury will offer
two-year, five-year and seven-year notes, as well as five-year
Treasury inflation-protected securities.