* Yields rise from near four-month lows
* Stocks rebound after ending below key level
* G20 nations accept Japan's easing program
* One suspect dead in Boston bombing; manhunt continues
By Luciana Lopez
NEW YORK, April 19 Prices for U.S. Treasuries
slipped on Friday after a two-day rally left yields near
four-month lows, with investors turning to riskier assets on
news that major industrialized nations supported Japan's massive
Leaders of the G20 group of nations accepted that Japan's
$1.4 trillion stimulus "is aimed at achieving price stability
and economic recovery, and therefore is in line with the G20
agreement in February," said Taro Aso, the country's finance
After a slide in U.S. equities this week left stocks cheap,
the G20's support of Japan whetted investor appetite for riskier
assets on Friday. But analysts said that with nothing else to
back it up, that momentum fizzled out.
"A little bit of a risk-on trade overnight, but very little
follow through with that," said Justin Lederer, an interest rate
strategist at Cantor Fitzgerald in New York.
Prices for benchmark 10-year notes fell 7/32 to
yield 1.708 percent, from 1.686 percent late on Thursday.
Thirty-year bonds fell 13/32 in price to yield
2.882 percent, from 2.8630 percent late on Thursday.
Still, yields remained largely within recent ranges, and
analysts said there was little to break Treasuries out until
markets have more certainty about growth in coming quarters.
Investors could also take their cues from equities markets
and corporate earnings reports in coming sessions, as well as
expectations for growth in the world's biggest economy.
U.S. stock index futures suggested a higher open, a day
after the S&P 500 closed below its 50-day moving average for the
first time this year.
"I think that probably Treasuries will probably react to
stocks and the data will probably just play a little bit of a
background" in coming sessions, said Thomas Simons, a money
market economist with Jefferies & Co in New York.
In addition, the gap between the yields on Treasuries and
inflation-indexed Treasuries widened after a sharp decline on
Thursday, when a weak auction underscored how little investors
are worried about inflation the face of faltering global growth.
The difference between the yields on five-year Treasury
Inflation-Protected Securities and five-year
regular Treasuries - known as the five-year
inflation "breakeven rate" - was up 5.85 basis points at 2.01
percentage points, according to Tradeweb.
The 10-year TIPS breakeven rate was up 4.40 basis points
from late Thursday at 2.31 percentage points.
The U.S. Treasury also plans to auction notes next week:
two-year notes on Tuesday, five-year notes on Wednesday and
seven-year notes on Thursday.
Also riveting markets was news of the hunt for the Boston
Marathon bombers. Monday's explosions at the race sent bond
prices higher in a bid for safety.
But police said one suspect was dead after a shootout early
on Friday, with the search for a second suspect going
door-to-door in the Boston suburb of Watertown.