TREASURIES-Edge higher supported by Fitch comments

Tue Nov 10, 2009 6:16am GMT
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TOKYO, Nov 10 (Reuters) - Treasuries were steady to slightly higher in Asian trading on Tuesday, drawing support after Fitch Ratings said there was no near-term risk to the United States' sovereign rating and that Britain was most at risk of losing its AAA status among major economies.

* A trader for a U.S. financial institution said two-year Treasuries initially attracted bids after the comments by David Riley, co-head of global sovereign ratings at Fitch, in an interview with Reuters Television. [ID:nTKF106727]

* Riley said the U.S. rating will be pressured if the fiscal position does not stabilise in the next couple of years.

* The comments by Fitch Ratings could prompt investors to consider shifting out of gilts into U.S. Treasuries, said the trader for a U.S. financial institution.

* Two-year notes were little changed in price, but the yield stood at an intraday low of 0.844 percent US2YT=RR, down nearly 2 basis points on the day.

* Benchmark 10-year note edged up 1/32 in price to yield 3.480 percent US10YT=RR, down 1 basis point from late U.S. trading on Monday. The yield dipped as low as 3.478 percent in wake of the comments by Fitch Ratings.

* After selling $40 billion in three-year notes on Monday, the Treasury will sell $25 billion in 10-year notes on Tuesday, the second leg of its three-part $81 billion refunding. (Reporting by Masayuki Kitano; Editing by Michael Watson)

 
 
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