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TREASURIES-US bonds edge down; Europe hopes spur profit-taking
June 5, 2012 / 3:36 AM / 6 years ago

TREASURIES-US bonds edge down; Europe hopes spur profit-taking

TOKYO, June 5 (Reuters) - U.S. Treasury bond prices edged lower in Asia on Tuesday, with yields moving further away from record lows, as investors took profits ahead of emergency G20 talks to address the euro zone’s deepening debt crisis.

* Finance heads of the Group of Seven leading industrialised nations are scheduled to hold a conference call later on Tuesday to discuss the European debt situation.

* “The call won’t solve Europe’s problems, but some good news might emerge and raise hope of progress, so some used it as an excuse to take profits from the recent rally,” said a fixed-income portfolio manager at a Japanese bank in Tokyo.

“But gains are likely to be limited head of the Greek elections on June 17, which could determine whether that country stays in the euro, followed by the Fed’s meeting on June 19-20,” he added.

* Disappointing employment data on Friday has increased expectations that the Federal Reserve will increase its bond purchases to stimulate the economy, particularly as its “Operation Twist” stimulus program expires at the end of this month.

* Investors will closely watch Fed chief Ben Bernanke’s speech to Congress on Thursday, for any hints on what the central bank might do.

* The yields on 10-year notes stood at 1.53 percent, compared with 1.52 percent in late U.S trading and 1.48 percent in Tokyo on Monday.

On Friday, they fell to a record low of 1.44 percent, nearly a full point below their recent high of 2.40 percent in mid-March.

* The yields on 30-year bonds stood at 2.58 percent, inching up from 2.57 percent in late U.S. trade and above 2.54 percent in Tokyo on Monday. (Reporting by Lisa Twaronite; Editing by Kim Coghill)

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