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TREASURIES-Bonds steady, no reaction to North Korea
February 12, 2013 / 4:35 AM / 5 years ago

TREASURIES-Bonds steady, no reaction to North Korea

TOKYO, Feb 12 (Reuters) - U.S. Treasuries were little changed on Tuesday, sticking to their familiar ranges and showing no reaction to the news that North Korea has likely conducted a nuclear test.

* The 10-year notes traded at yield of 1.966 percent , little changed from late U.S. levels.

* An international nuclear test monitoring agency said on Tuesday that it had detected an “unusual seismic event” in North Korea, following weeks of speculation that a nuclear test was imminent in the country.

* The yield has been stuck in a trading range between 1.95 and 2.05 percent in the past couple of weeks, as the Fed’s constant buying underpinned the market despite investors’ optimism on the global economic outlook.

* “At the end of the day, it will be quite some time ahead that the Fed will stop buying bonds,” said a fund manager at a U.S. asset management firm.

* The Federal Reserve’s vice chairman, Janet Yellen, said on Monday the Fed’s aggressive and ongoing easing of monetary policy is warranted given the still-battered state of the U.S. labor market.

* An immediate focus is on President Barack Obama’s State of the Union address on Tuesday, which will be watched for any signs that lawmakers are likely to reach a deal to avert automatic spending cuts due to take effect on March 1.

* The market is also bracing for $72 billion of new Treasury supply this week, starting from Tuesday’s sale in $32 billion three-year notes.

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