TOKYO Jan 23 U.S. Treasuries steadied in Asia
on Wednesday after a small rise the previous session, with
further advance blocked by hopes Washington policymakers will
give a green light to a measure to extend the U.S. debt limit
for nearly four months.
* Treasuries rose slightly on Tuesday on a
lower-than-expected reading in the headline U.S. existing home
sales, although the data showed no sign of change in an
underlying recovery trend in the housing market.
* The National Association of Realtors said on Tuesday that
U.S. existing home sales dropped 1.0 percent last month to a
seasonally adjusted annual rate of 4.94 million units, below the
median forecast of a 5.1 million-unit rate in a Reuters poll.
* With U.S. shares hitting a five-year high on
cautious optimism that the U.S. economy is on the mend,
investors were reluctant to bid up Treasuries further.
* Treasuries were also capped as Washington moved closer to
"suspend" the debt ceiling, allaying concerns the U.S.
government could misses payment in the near future, thus causing
a major disruption in the economy.
* A bill put forward by Republicans on temporarily extending
the U.S. debt-limit is due to come to a vote in the
Republican-controlled House of Representatives on Wednesday.
* The debt ceiling is by no means the only issue Washington
needs to tackle, with other fiscal deadlines looming, including
a March 1 launch of automatic spending cuts and a March 27
expiration of funding for government agencies and programs.
* Concerns about possible automatic spending cuts should
continue to provide some support to U.S. Treasuries in coming
weeks, analysts said.
* The 10-year notes traded at a yield of 1.847 percent
, little changed from late U.S. levels.