* Investors await Treasury debt auctions
* Bond prices stable after last week's drop
* China's trade balance swings to deficit
By Sam Forgione
NEW YORK, March 10 U.S. Treasuries traded mostly
flat on Monday ahead of debt auctions this week with no new U.S.
economic data on tap for now.
Yields were roughly unchanged after hitting their highest
levels in six weeks on Friday on stronger-than-expected jobs
data. A lack of new U.S. economic data drew investors' attention
to upcoming bond auctions. Traders said the auctions are likely
to attract buyers after last week's dip in prices.
"The backup in yields thus far is going to create decent
demand," Guy LeBas, chief fixed income strategist at Janney
Montgomery Scott in Philadelphia. Bond yields move inversely to
The government will sell $64 billion in new coupon-bearing
debt this week, including $30 billion in three-year notes, $21
billion in 10-year notes and $13 billion in 30-year bonds.
The yield on the 10-year Treasury rose about 18 basis points
to 2.79 percent last week on a calming of geopolitical tensions
in Russia and Ukraine and strong U.S. jobs data.
Prices on benchmark 10-year U.S. Treasuries were
last up 3/32 to yield 2.78 percent. That level was down just
slightly from last Friday, when the 10-year yield traded at 2.79
Traders said the slight gain in benchmark Treasuries came
after data on Saturday showed China's exports unexpectedly
tumbled 18 percent year-on-year in February, swinging the trade
balance into deficit and adding to fears of a slowdown in the
world's No. 2 economy.
"The weak China trade balance data caused some flight to
quality on less optimism about the global economy," said Jeffrey
Young, interest rate strategist at Nomura in New York.
He added, however, that Treasuries pared much of the modest
gain on a lack of new U.S. economic data and little new
development in Ukraine.
The 30-year Treasury bond last traded up 3/32 in
price to yield 3.72 percent, roughly unchanged from Friday.