* 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 U.S. Treasuries prices edged
down on Friday after a two-day rally left yields near four-month
lows and investors turned to battered stocks, even as the hunt
for a bombing suspect in Boston nearly emptied that city's
Also helping riskier assets were reassurance from Japan's
finance minister that other industrialized nations accepted that
Japan's $1.4 trillion stimulus plan was designed to buoy a
stagnating economy and thus was in line with a previous G20
Investors also scooped up stocks after the Standard & Poor's
500 index closed below a key level in the previous
session for the first time this year. Quarterly results from
Microsoft and Google also helped boost the Nasdaq.
The market is "pausing here, taking a breath, seeing more
earnings come out," said Dimitri Delis, interest-rate strategist
at BMO Capital Markets in Chicago.
"Right now we're in earnings season; that's going to drive
it," he added. If corporate results come in weak, he said,
yields could go yet lower.
Prices for benchmark 10-year notes fell 6/32 to
yield 1.707 percent, from 1.686 percent late on Thursday.
Thirty-year bonds fell 15/32 in price to yield
2.885 percent, from 2.8630 percent late on Thursday.
Also riveting markets was news of the hunt for the Boston
Marathon bombers. Monday's explosions at the race had sent bond
prices higher in a bid for safety.
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.
The usually bustling streets of Boston's financial district
were nearly bare on Friday as staff worked from home during a
virtual lockdown of the city.
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
global growth expectations.
"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.
Growth prospects not just for the United States but also for
other major economies could weigh as well, analysts said.
"The German and China data, that's the concern to see if
they are truly slipping. If that gets confirmed, we get to 1.60
percent on the 10-year," said William Larkin, fixed income
portfolio manager at Cabot Money Management in Salem,
Helping limit losses, the Federal Reserve bought $1.48
billion of Treasuries maturing between February 2036 and
February 2043 on Friday, part of its asset-buying program meant
to strengthen the U.S. economy and boost employment.
In addition, the gap between 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 in the face of faltering global
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.