TREASURIES-Soft in Asia on light profit-taking

TOKYO, Oct 20 (BestGrowthStock) – U.S. Treasury debt prices softened
slightly in Asian trade on Wednesday as investors in the region
took profits on the previous day’s gains, while futures also
slipped.

* One trader reported profit-taking by Asian funds in 10-year
notes (US10YT=RR: ), which eased 2.5/32 in price to yield 2.489
percent, up almost a basis point from late U.S. trading.

* Bond prices rose on Tuesday, helped by concerns on
investigations into U.S. home foreclosures which hurt U.S.
shares. The 10-year note yield fell on Tuesday but remains well
above a 20-month low of 2.334 percent set in early October.

* The Dec future on the 10-year note (TYv1: ) eased 3.5/32 to
126-29/32. Shares around the region were mixed, with stocks in
Shanghai (.SSEC: ) up after falling early on following a rate hike
in China, and S&P futures (SPc1: ) also firm.

* The yield spread between 2- and 10-year Treasury notes
stood at 212 bps, not as tight as levels seen in late August at
about 195 bps.

* The 2-year note (US2YT=RR: ) slipped slightly in price to
yield 0.367 percent, up almost half a basis point from late U.S.
trade and above a record low of 0.335 percent set last week as
speculation about more quantitative easing from the Federal
Reserve drove yields down.

* Fed officials speaking on Tuesday hinted more monetary
stimulus would soon be on offer, helping support Treasuries. Fed
speakers on Wednesday include Richmond Fed President Richard
Lacker at 1330 GMT and Philadelphia Fed President Charles Plosser
at 1645 GMT. The Fed also releases its Beige Book of regional
economic conditions at 1800 GMT.
(Reporting by Charlotte Cooper; Editing by Joseph Radford)

TREASURIES-Soft in Asia on light profit-taking