TREASURIES-Dip in Asia in jittery trade before auction

Mon Nov 9, 2009 5:38am GMT
[-] Text [+]

TOKYO, Nov 9 (Reuters) - Longer-dated U.S. Treasuries dipped in Asia on Monday with investors wary about a record auction of $40 billion in three-year notes later in the day.

* Relatively firm Asian shares and U.S. stock futures, despite a worse-than-expected U.S. unemployment rate, prompted investors to take profits made last week, dealers said. Tokyo's Nikkei share average .N225 rose 0.3 percent and the MSCI index of Asia stocks excluding Japan .MSCIAPJ gained 1.5 percent. U.S. stock futures DJc1 SPc1 rose 0.3 to 0.4 percent.

* In addition to a three-year offering on Monday, the U.S. Treasury Department will sell $25 billion in benchmark 10-year notes on Tuesday and $16 billion in 30-year bonds on Thursday.

* "Caution before a series of auctions this week weighed on the Treasury market. Also, some investors may be worried over U.S. fiscal discipline as they may think a jump in the jobless rate could lead to more stimulus measures," a fixed-income strategist for a Japanese securities firm said.

* Ten-year futures TYv1 were down 5.5/32 at 118-08/32 and benchmark 10-year notes slipped 6/32 in price to yield 3.529 percent US10YT=RR, up 2 basis points from late U.S. trade on Friday.

* Two-year notes inched down 1/32 in price to yield 0.873 percent US2YT=RR, and 30-year bonds fell 9/32 in price to yield 4.417 percent US30YT=RR, up about 2 basis points.

* Most U.S. Treasury debt prices rose on Friday after data showed the U.S. jobless rate unexpectedly hit a 26-1/2-year high of 10.2 percent.

* Federal Reserve Board Governor Daniel Tarullo speaks on "Financial Regulation" before the Money Marketeers of New York University on Monday evening. (Reporting by Kaori Kaneko; Editing by Michael Watson)

 
 
by Name by Symbol