TREASURIES-Sit still in Asia before retail data, auction

TOKYO, July 14 (BestGrowthStock) – U.S. Treasuries were steady in
Asian trade on Wednesday as investors awaited a flood of data due
this week, a 30-year debt auction and minutes of the Federal
Reserve’s last meeting.

* September futures on the 10-year Treasury note slipped 2/32
to 121-19/32 (TYv1: ), staying under pressure a day after a stock
market rally spurred by better-than-expected earnings from Alcoa
(AA.N: ) prompted investors to shift their funds to stocks from
government bonds.

* Activity was subdued as market participants eyed a batch of
data including June retail sales at 1230 GMT, June industrial
production on Thursday and June consumer prices on Friday.

* Investors are paying close attention to data as fears of a
double-dip recession along with concerns over the euro zone debt
crisis pushed the benchmark 10-year yield to a 14-month low of
2.88 percent earlier this month.

* Ten-year notes were unchanged in price to yield 3.123
percent (US10YT=RR: ). The 30-year yield stood at 4.109 percent
(US30YT=RR: ), barely moved from late U.S. trade on Tuesday.

* The Treasury Department is due to sell $13 billion of
30-year debt later in the day, in the last leg of this week’s
three auctions totalling $69 billion. Auctions of three- and
10-year notes in the previous two days met lukewarm demand.

* Some traders said Wednesday’s 30-year debt sale could also
produce poor results as bullishness on Wall Street thanks to
solid earnings figures from some big companies is expected to
dent demand for safe-haven Treasuries. But even so, few expect
Treasury yields to keep rising in a rapid pace.

* “Investor demand for U.S. government bonds remains strong,”
said Akihiro Nishida, a senior fixed-income strategist at
Mitsubishi UFJ Morgan Stanley Securities. “In fact, many feel a
rise in Treasury yields of late is giving them a chance to hunt

* Treasuries may draw support if the minutes of the Fed’s
June 22-23 meeting due for release at 1800 GMT strengthen
expectations the central bank will leave interest rates near zero
for some time, Nishida said.
(Reporting by Rika Otsuka; Editing by Michael Watson)

TREASURIES-Sit still in Asia before retail data, auction