TOKYO Jan 29 U.S. Treasury yields rose near a
nine-month high on Tuesday, extending their uptrend on signs of
improvement in Europe and mildly upbeat U.S. economic data.
* The yield on 10-year notes rose to 1.985 percent
, up slightly from 1.960 percent in late U.S. trade
and near Monday's intraday high of 2.006 percent, which was its
highest in nine months.
* "In a nutshell, Treasuries are sold as Europe is getting
back to normal. In addition, there are concerns that the Fed may
become more hawkish at the policy meeting (on Jan. 29-30),
though such worries could prove wrong," said a trader at a
* Treasuries came under pressure last week on news that
European banks planned to repay more emergency loans than
expected, suggesting the region's banking sector was on the mend
and cooling demand for lower-risk debt.
* A stronger-than-expected reading for durable goods orders
on Monday spurred further selling in Treasuries while investors
were also pushing for price concessions ahead of auctions of $99
billion of U.S. government debt this week.
* The market is now looking to the Fed's policy meeting
ending on Wednesday for any signs it is mulling an end to its
latest bond purchase programme this year.