TOKYO Dec 27 U.S. Treasuries were steady in
Asia on Thursday, as investors awaited developments on
Washington's "fiscal cliff" budget stalemate.
* U.S. debt prices remained underpinned by the possibility
that Congress would fail to reach a deal before Jan. 1 to avert
the $600 billion of spending cuts and tax hikes that economists
fear could tip the U.S. economy back into recession.
U.S. House of Representatives Speaker John Boehner on
Wednesday urged the Senate to pass its version of legislation to
avert the "fiscal cliff."
* "Sooner or later, they will resolve this situation
somehow, but no one knows the timing of this, or the moves each
side will take toward the outcome," said a fixed-income fund
manager at a Japanese asset management firm in Tokyo.
"In that way, it's a little like watching a professional
wrestling match," he added.
* Yields on 10-year Treasuries were at 1.76
percent on Thursday in Asian trade, steady from late U.S. trade
* Yields on 30-year Treasuries stood at 2.93
percent, also steady from Wednesday.
* On the supply side, the U.S. Federal Reserve will buy
bonds on Thursday and Friday as part of the waning days of its
"Operation Twist" stimulus program, in which it bought long-term
debt to drive down interest rates, funding its purchases with
sales of short-term notes. The Fed will replace this program
next year with outright bond purchases of maturities ranging
from five- to 30-years.
On Thursday, the Fed will buy up to $5.25 billion in notes
due 2018-2020, followed by up to $5.25 billion in notes due
2021-2022 on Friday.