TOKYO Feb 15 U.S. Treasuries prices rose in
Asia on Friday, extending gains from the previous day following
disappointing growth data from the euro zone and a strong result
at a 30-year bond auction.
* The yield on the benchmark 10-year notes fell to 1.984
percent, from around 1.998 percent at the end of
U.S. trade, and from a 10-month high of 2.062 percent hit on
* The euro zone slipped deeper than expected into recession
in the last three months of 2012, with its economy shrinking 0.6
percent, the steepest contraction since the first quarter of
* The data sapped optimism in the global economic outlook
and helped to underpin the market. Treasuries also benefited
from solid sales of $16 billion in 30-year bonds.
* Some investors see Treasuries yields as likely to ease
after this week's $72 billion in supply is absorbed, with
automatic budget cuts, scheduled to come into effect on March 1,
likely to come into sharper focus.
* The cuts, if implemented, are expected to reduce economic
growth, which could send rates back lower.
* "It will be positive for Treasuries if Congress misses
that deadline (to make any deal). In addition, the U.S. economy
is unlikely to gather momentum given the tax hike," said Tomoaki
Shishido, fixed income analyst at Nomura Securities.