SINGAPORE Jan 16 U.S. 10-year Treasuries held
firm in Asia on Wednesday, after advancing the previous day on
traders' increasing concern over the looming fight in Washington
to raise the federal debt ceiling.
* Ten-year notes rose 3/32 in price to yield roughly 1.826
percent. The 10-year yield was down 1 basis point
from late U.S. trade, and was within sight of a two-week low
near 1.81 percent set on Tuesday.
* The 10-year yield is likely to move in a 1.8 percent to
2.1 percent range over the next few weeks, said Tomoaki
Shishido, rate analyst for Nomura Securities in Tokyo.
That range could shift higher around early March, if the
U.S. debt ceiling is raised by then and economic indicators show
that the U.S. economy is holding up relatively well, he said.
"I think there will ultimately be a compromise and that the
debt ceiling will be raised in a reasonable manner," Shishido
Most investors expect the U.S debt ceiling will be raised to
avert a default in Treasuries. But a deal could come down to the
wire, and there is concern that the resulting uncertainty could
pare investors' appetite for equities and other risky assets.
* The U.S. Treasury cautioned on Monday that the United
States was on track to exhaust its options to meet its debt
obligations between mid-February and early March.