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TREASURIES-U.S. bonds inch up but gains capped as jobs data eyed
March 7, 2013 / 11:07 AM / 5 years ago

TREASURIES-U.S. bonds inch up but gains capped as jobs data eyed

LONDON, March 7 (Reuters) - U.S. Treasuries held steady on
Thursday as higher yields lured some investors back into the
market but gains were limited after strong jobs data the
previous day added to signs of improvement in the U.S. economy.
     Speculation that the Bank of England could announce more
bond purchases later in the day and expectations the European
Central Bank will signal continued loose monetary policy at its
meeting also supported demand for low risk bonds.
    Ten-year T-notes were last 3/32 up in price to yield 1.93
percent. The 10-year yield was not very far from
Wednesday's peak of 1.944 percent, its highest level in more
than a week. 
     "The market has been down over the last few days but we're
seeing some stability and it's even trading a little bit better
this morning," a trader said.
     "But trading is light as don't forget we have Bank of
England and the ECB and these are going to be potentially big
market-moving events. People are expecting the BoE to do 25
billion pounds in QE (bond purchases) so anything less than that
is going to be a disappointment for the market." one trader
said.
    Investors were also wary of taking bid positions before the
U.S. non-farm payrolls report on Friday. The ADP National
Employment Report showed on Wednesday that private employers
added 198,000 jobs last month, handily beating expectations.
 
    "As a whole, I don't feel like there are a huge amount of
investors anxious to move positions around before this number,"
a Tokyo-based trader said.

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