TOKYO Feb 8 U.S. Treasuries were slightly lower
in Asian trading on Friday after better-than-expected trade data
from China confirmed a recovery is under way in the world's
* Exports in January grew 25 percent from a year earlier,
beating a forecast of 17 percent in a Reuters poll. Imports
surged 28.8 percent to top a consensus call of 23.3 percent, and
the $29.2 billion trade surplus topped a market expectation of
* Yields on 10-year Treasuries crept up slightly
to 1.956 percent in Asian trade on Friday, from 1.953 percent in
late U.S. trade on Thursday.
* Yields on 30-year Treasuries rose to 3.172
percent, from 3.164 percent on Thursday.
* Still, as the China data underscored a trend that many
already believed was under way rather than offering a new
directional signal to investors, the bond market reaction was
small, market participants said.
* "Moves were small as there weren't new major trading
factors today," said Tomoaki Shishido, rate analyst for Nomura
Securities in Tokyo.
"Sometimes on days when there aren't any major new
developments, Treasuries can move in line with foreign exchange
markets, but forex was relatively stable today," he added.
* Underpinning demand for bonds, European Central Bank chief
Mario Draghi said on Thursday that economic activity in the euro
area should recover gradually in 2013 but added there are more
negative risks than positive.
* Fears about Europe offset any impact on bonds of U.S. data
showing an improvement in the labour market, with the number of
Americans filing new claims for jobless benefits falling last