TOKYO Feb 7 U.S. Treasuries stabilised in Asia
on Thursday, as the rally in global shares paused and the market
looked to the European Central Bank's policy meeting later in
* The yield on 10-year notes stood at 1.962
percent, little changed from late U.S. levels, after having
fallen about five basis points on Wednesday.
* Although investors are cautiously optimistic about the
global economic outlook, concerns that possible political
instability in Italy and Spain could hit the European economy
anew are curbing risk appetite, helping to underpin Treasuries.
* "It seems like there are solid bids (for 10-year notes)
from investors at two percent or above," said a trader at a
* The 10-year yield has been stuck in a range around two
percent for the past two weeks as the market is also supported
by the Federal Reserve's constant bond buying.
* For now the market is looking to the ECB meeting. The ECB
is widely expected to keep rates on hold but some market players
expect Governor Mario Draghi to tone down his upbeat assessment
on the euro zone economy at his press conference.