TOKYO Jan 30 U.S. Treasuries slipped in Asia on
Wednesday, sending the yield on 10-year notes to a nine-month
high above 2 percent, though how much it will rise above that
big level could hinge on the U.S. Federal Reserve's view on the
* The yield on 10-year notes rose to as high as 2.021
percent, its highest since April last year, as the
market extended its losing streak to the fifth day. It last
stood at 2.012 percent, up from around 2.00 percent in late U.S.
* Treasuries have been sold as investors unwound safe-haven
buying in Treasuries as European financial markets are returning
to normal and also as market players sought price concession for
this week's auctions.
* The Treasury will sell $29 billion of seven-year notes
on Wednesday, following sales of $35 billion five-year notes on
Tuesday and $35 billion two-year notes on Monday.
* "People are trying to re-evaluate what the new potential
ranges are... We broke through the 2 percent, so the technicals
aren't great," said a trader at a European brokerage, adding
that there may be buying interest from investors at 2.08-2.10
* Selling could accelerate further if the Fed policy
statement due at 1915 GMT on Wednesday contains an upgrade on
its economic assessment and any hints of uneasiness within the
central bank around its asset-buying program.
* "A big question is whether the Fed is still cautious on
the economy following recent improvements in Europe and U.S.
fiscal cliff talks. If the Fed becomes more optimistic in its
economic assessment, which I think is a bit more likely than
not, then the Treasuries could come under pressure," said Hiroki
Shimazu, fixed income analyst at SMBC Nikko Securities.
* Aside from the Fed, investors are looking out for the
first estimate of U.S. fourth-quarter GDP due at 1330 GMT.