TOKYO Feb 1 U.S. Treasuries were little changed
in Asia on Friday, with all eyes on the jobs report due later in
the day as investors seek to gauge the speed of recovery in the
U.S. job market, which holds the key to the U.S. monetary policy
* Ten-year notes traded at a yield of 1.992 percent
, little changed from 1.985 percent in late U.S.
trade, and off a nine-month high of 2.037 percent hit on
* If the yield closes above 2.01 percent, a 61.8 percent
retracement of the yield's fall from 2.40 to 1.38 percent in
March-July last year, that could lead to a test of resistance
from its channel top around 2.08 percent, George Davis, chief
technical analyst at RBC Dominion Securities, said in report.
* Treasuries have been under pressure as investors move
funds from bonds to riskier assets as fears over the euro zone
debt crisis ease, and sharp fiscal contraction in the United
* The 10-year yields posted the biggest monthly rise since
March 2012 in January, gaining about 22 basis points, but it has
so far unable to stay sustainable above the two percent mark, a
major psychological resistance.
* A strong employment report could help clear the hurdle,
however, as it could spark expectations that the Fed may scale
back its bond buying programme. It is due at 1330 GMT.
* The median of forecasts from analysts polled by Reuters is
for U.S. employers to have added 160,000 new jobs in January, up
slightly from 155,000 new positions in December. The
unemployment rate is expected to be unchanged from 7.8 percent
* "If it's above 200,000, it's going to be quite nasty for
Treasuries," said a trader at a Japanese bank.
* On Thursday, data showed initial weekly jobless claims
rose off five-year lows to levels consistent with tepid job
growth, with claims rising more than expected.