November 26, 2012 / 6:20 AM / 5 years ago

TREASURIES-Prices rise in Asian trade on Europe, US uncertainty

TOKYO, Nov 26 (Reuters) - U.S. Treasuries rose in Asia trading on Monday, as worries about a regional Spanish vote and the U.S. fiscal cliff offset hopes that Greece will reach a deal to secure the funds it needs to stay afloat.

* Separatists in the Spanish region of Catalonia, which accounts for 20 percent of the economy and provides the most tax revenue to the central government, won an election on Sunday.

* U.S. lawmakers have made little progress in the past 10 days toward a compromise to avoid the harsh tax increases and government spending cuts scheduled for Jan. 1, a senior Democratic senator said on Sunday.

* Euro zone finance ministers will meet on Monday to try to reach an elusive agreement to allow Greece to obtain another round of funds from international lenders in time for debt repayments due in the middle of next month. Monday will mark the third meeting in as many weeks.

Germany Chancellor Angela Merkel said she was confident a deal could be reached, and France’s finance minister also said an accord was close.

* While the European uncertainty and looming U.S. fiscal crisis kept Treasuries well-bid, market participants said that barring some unexpected development, recent trading ranges will likely hold for the remainder of the month.

* “It’s hard to imagine that there will be big moves this week, with supply/demand factors in focus in the last trading week of the month, and with this week’s sales,” said Tomoaki Shishido, a rate analyst for Nomura Securities in Tokyo.

* The U.S. Treasury Department will offer $99 billion in debt this week, starting with $35 billion of two-year notes on Tuesday, followed by $35 billion of five-year notes on Wednesday and $29 billion of seven-year notes on Thursday.

* Yields on 10-year Treasuries slipped to 1.674 percent on Monday in Asian trade from 1.692 percent in late U.S. trade on Friday.

* Yields on 30-year Treasuries fell to 2.809 percent from 2.833 percent on Friday.

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