SINGAPORE Feb 21 U.S. 10-year Treasuries inched
higher in Asia on Thursday, but its gains were limited even as
weakness in equities stirred some safe haven bids for bonds.
* Ten-year notes edged up 1/32 in price to yield roughly
2.007 percent, steady from late U.S. trade on
* U.S. Treasuries had risen on Wednesday as a fall in stock
prices rekindled investors' appetite for less risky assets.
The S&P 500 index posted its biggest one-day fall in
three months on Wednesday after minutes of the Federal Reserve's
January meeting showed that a number of Fed officials think the
central bank might have to slow or stop buying bonds before
seeing the pickup in hiring the programme is designed to
* Gains in Treasuries over the past couple of days seem
tepid relative to the sell-off seen in risky assets, said
Satoshi Okagawa, senior global markets analyst for Sumitomo
Mitsui Banking Corporation in Singapore.
"Although market sentiment is toward risk-off, the yield
hasn't dropped below 2 percent... I find that a bit surprising,"
Okagawa said, referring to moves in the 10-year Treasury yield
The mild moves in bonds may be a sign that the market is not
overly short Treasuries at this juncture, which would limit the
need for traders to buy them back to square positions, he added.
* Markets will receive a flurry of data later on Thursday
including the consumer price index, weekly jobless claims and
existing home sales.
There will also be an auction of 30-year Treasury Inflation
Protected Securities later on Thursday.