* 10-year yields see highest percentage change in 4 months
* Fed bought $1.23 bln in Treasuries
* Focus turning to Friday's U.S. jobs market report
By Marina Lopes
NEW YORK, March 4 U.S. Treasury debt prices
extended losses 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
Putin also ordered troops involved in a military exercise
close to the Ukrainian border back to their bases, apparently
seeking to ease East-West tensions.
The news sent benchmark 10-year note yields to an intra-day
high of 2.6923 percent, up from Monday's close of 2.608 percent,
the biggest daily percentage point change in almost four months.
"This is definitely on relief that perhaps the
Russian-Ukrainian crisis may be reaching some kind of
resolution," said Wilmer Stith, co-manager of the Wilmington
Broad Markets Bond Fund in Baltimore.
Ten-year notes were last down 22/32 in price,
pulling yields up to 2.687 percent. Thirty-year bonds
fell 1-14/32 in price, sending yields to 3.635
percent from Monday's close of 3.558 percent.
Investors are now awaiting the Labor Department's non farm
payrolls report due on Friday for insights into the trajectory
of the economy.
"It's a very cautious market environment that we are in
right now as we ready for Friday's payroll number," Stith said.
"We know that is going to be negatively influenced by weather.
The question is to what extent and whether we get any
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 bought $1.23 billion in Treasuries
maturing between 2038 and 2043, as part of its ongoing