TOKYO Jan 9 U.S. Treasuries inched lower in
Asian trading on Wednesday, ahead of an offering of 10-year
notes later in the session as well as an upcoming 30-year bond
* The Treasury will sell $21 billion in 10-year notes on
Wednesday and $13 billion in 30-year bonds on Thursday.
* A sale of $32 billion of three-year notes on
Tuesday saw strong non-dealer bidding. The high yield was 0.385
percent, in line with expectations.
* But some market participants were wary that the sales of
longer maturities would proceed as smoothly.
* "I think the 10- and 30-year sales will be tougher," said
Hiroki Shimazu, an economist at SMBC Nikko Securities in Tokyo.
"The shorter end is supported by expectations of the Fed's
easy policy for some time to come, but further out, there is
uncertainty about such matters as the possibility of a U.S.
downgrade in the longer term," he said.
* Last week, Treasuries dropped after U.S. policymakers
reached a deal to avoid the "fiscal cliff" of tax hikes and
spending cuts that could have pushed the economy back into
recession. Benchmark yields rose to eight-month highs after
minutes of the Federal Reserve's December meeting raised concern
that it could begin to phase out its bond-buying by the end of
* Yields on 10-year Treasuries rose to 1.878
percent in Asian trade on Wednesday, from 1.866 percent in late
U.S. trade on Tuesday.
* Yields on 30-year Treasuries stood at 3.081
percent, also up from 3.065 percent on Tuesday.