TREASURIES-Consolidate in Asia before Bernanke’s testimony

HONG KONG, July 19 (BestGrowthStock) – U.S. Treasury prices
consolidated gains after Friday’s rally as traders await Fed
Chairman Ben Bernanke’s comments on the health of the economy
later this week before taking fresh positions.

* Latest data showed the annual rate of inflation fell in
June, coinciding with the third straight monthly decline in
consumer prices, while consumer sentiment tumbled, adding to
evidence growth is fizzling. For details see [ID:nN1653074].

* Bernanke could temper fears of a double-dip recession
when he testifies at his semi-annual appearance before Congress
on Wednesday and Thursday. For more, see [FED/DIARY].

* Two-year Treasury notes (US2YT=RR: ) were half a basis
point higher on Monday to yield 0.60 percent after falling to a
record low of 0.58 percent last week. Trading was quiet as
Tokyo was shut for a holiday.

* The consumer price index slipped 0.1 percent in June
after falling 0.2 percent in May. Analysts had expected
consumer prices to hold steady.

* The data followed a downgraded growth and inflation view
by the Federal Reserve last week, which also showed a few
policymakers were concerned about the risk of deflation.

* The benchmark 10-year note (US10YT=RR: ) edged 1 basis
point higher to yield 2.94 percent. It hit a 1-