Reuters logo
TREASURIES-Bonds gain, take cue from weak stocks; U.S. GDP eyed
October 26, 2012 / 6:56 AM / 5 years ago

TREASURIES-Bonds gain, take cue from weak stocks; U.S. GDP eyed

TOKYO, Oct 26 (Reuters) - U.S. Treasuries gained in Asia on Friday, taking their cue from broadly weaker Asian stocks on concerns over corporate earnings.

* The MSCI index of Asia-Pacific shares outside Japan skidded 1.1 percent, and was set for its largest weekly decline in two months.

* The yields on 10-year notes fell to 1.796 percent from 1.828 percent in late U.S. trading on Thursday, and remained solidly below their 200-day moving average, now at 1.804 percent.

* “Until 10-year yields decisively break above 1.8 percent, we won’t be convinced that the trend has changed,” said a fixed-income fund manager at a Japanese asset management firm.

* Yields on 30-year bonds slipped to 2.942 percent from 2.977 percent in late U.S. trading.

* On the data front, investors await the preliminary reading of U.S. third-quarter gross domestic product later on Friday. The annualised rate of growth is seen at 1.9 percent, picking up from a 1.3 percent pace.

On Thursday, U.S. business investment showed signs of stalling in September.

* On the supply side, the U.S. Treasury sold $29 billion in seven-year notes on Thursday at a high yield of 1.267 percent. The sale’s bid-to-cover ratio was 2.56, the lowest in more than three years, indicating lackluster demand.

* On Wednesday, the U.S. Federal Reserve stayed its hand as expected, holding monetary policy steady after it launched a new round of bond purchases last month.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below