SINGAPORE Feb 4 The U.S. 10-year Treasury yield
hit a nine-month high on Monday after jobs and manufacturing
data on Friday showed the U.S. economy's recovery remained on
track and helped lift equities to five-year highs.
* Ten-year Treasuries fell about 7/32 in price to yield
2.052 percent. That was the U.S. 10-year yield's
highest level since mid-April of last year.
* U.S. employment grew modestly in January and job gains in
the previous two months were larger than first reported, while
factory activity hit a nine-month high in January, data released
on Friday showed.
Safe haven Treasuries came under pressure after the data
sparked a stock market rally on Friday, when the Standard &
Poor's 500 Index touched its highest level since December
* "It is hard to be all that bullish (on Treasuries) at this
point," said Tomohisa Fujiki, interest rate strategist at BNP
Paribas in Tokyo.
However, uncertainty related to forthcoming federal spending
cuts, as well as over whether consumer spending will hold firm
in the wake of a recent payroll tax increase, might help limit
rises in Treasury yields, Fujiki said.
* Across-the-board federal spending reductions were
postponed for two months as part of a deal that ended the
"fiscal cliff" standoff at the beginning of the year.
According to a Reuters poll on Friday, economists at 11 of
13 primary dealers - large financial institutions that do
business directly with the Federal Reserve - said they expect
some form of the spending cuts to begin on March 1.