SINGAPORE Feb 6 U.S. 10-year Treasuries were little changed in Asia on Wednesday, but the 10-year yield held above 2 percent after a rebound in U.S. equities the previous day helped dent appetite for safe-haven government debt.
* The 10-year yield is likely keep its upward bias due on positive market sentiment toward risky assets, said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation (SMBC) in Singapore.
The 10-year yield will probably move in a range of 1.8 percent to 2.2 percent for this month, he said.
* Ten-year Treasuries were steady in price to yield roughly 2.005 percent. The 10-year yield had risen to 2.059 percent on Monday, its highest level since last April.
After hitting that high, the 10-year yield dipped on Monday when safe-haven Treasuries rose as Italian and Spanish government bond yields jumped on worries about possible political shake-ups in those countries.
The 10-year yield, however, pushed higher on Tuesday, with safe-haven Treasuries dented by factors such as a rise in U.S. shares and declines in Italian and Spanish bond yields.
* The yield curve will probably stay under steepening pressure given recent signs of a U.S. economic recovery and strength in equities, coupled with the Federal Reserve's accommodative monetary policy, SMBC's Okagawa added.
The 2-year/10-year yield spread now stands at roughly 175 basis points , having widened from about 151 basis points at the end of last year, as 10-year notes underperformed the two-year sector.