Benchmark 10-year U.S. Treasuries slipped in Asia on Monday as rallies in regional shares encouraged investor risk appetite, reducing demand for safe-haven government debt.
Asian shares rose, with Tokyo's Nikkei average climbing 2.3 percent and the MSCI broad measure of Asian stocks outside Japan up 2.6 percent.
Supply concerns also weighed on the Treasury market as investors braced for another chunk of issuance this week. Investors have been increasingly willing to take risks led by recent stock gains, but it remains to be seen whether share prices will continue their rally.
It will be difficult for the 10-year Treasuries yield to rise above 3% as the Fed will likely try to prevent it, and economic fundamentals are still weak. The benchmark 10-year note fell 2/32 in price to yield 2.902 percent, up about 1 basis point from late New York trade on Friday. Two-year notes were little changed in price to yield 0.968 percent. The U.S. Treasury department will sell three and 10-year notes this week, in addition to a $6 billion reopened 10-year inflation-protected bond issue and a slew of bills. (Reuters)
