* A respite in the Ukraine crisis pressures prices
* 10-year yields could face support at 2.77 percent
* Fed to buy $1 bln- $1.25 bln in debt maturing in 2036-2044
By Marina Lopes
NEW YORK, March 4 U.S. Treasury debt prices fell
on Tuesday as Russian President Vladimir Putin said his country
would use military force in the Ukraine only as a last resort,
prompting a reversal in Monday's flight to safe assets like U.S.
Putin on Tuesday also ordered troops involved in a military
exercise in western Russia, close to the border with Ukraine,
back to their bases, apparently seeking to ease East-West
tension over fears of war in the former Soviet
The news sent yields climbing to an intra-day high of 2.6620
percent, erasing Monday's gains, when yields fell to a one-month
"Respite with the Russia-Ukraine situation is taking some of
the flight-to-quality bid out of the Treasury market," said
Robert Tipp, chief investment strategist at Prudential Fixed
Income in Newark, NJ.
"The rapid developments over the weekend, especially coming
amidst mixed data in the U.S., for a brief interval, took the
wind out of the sails of the risk-on trade," said Tipp.
Ten-year notes were down 13/32 in price, pulling
yields up to 2.653 percent from Monday's close of 2.608 percent.
Thirty-year bonds fell 24/32 in price, sending
yields to 3.598 percent from Monday's close of 3.558 percent.
"Treasuries can be in for a sharp, short-term correction,"
if tensions in the Ukraine ebb further, said Tipp.
Ten-year yields could face support at the 40-day moving
average at 2.77 percent, but traders noted that the crisis in
Ukraine is fluid and could worsen again.
The Federal Reserve will buy between $1.00 billion and $1.25
billion in debt maturing between 2036 and 2044 on Tuesday as
part of its ongoing purchase program.
In the absence of any new economic data on Tuesday,
investors await the Labor Department's non farm payrolls report
due on Friday for further indication of the trajectory of the