TREASURIES-Steady ahead of U.S. economic data dose

HONG KONG, Dec 23 (BestGrowthStock) – U.S. Treasuries were largely
unchanged on Thursday, with benchmark 10-year yields holding
well below the seven-month high reached last week ahead of
U.S. durable goods and initial jobless claims data.

A holiday in Japan sapped the market of liquidity during
Asian trading hours, though the year end has also made price
action whippy lately.

Still, if the November durable goods data reflect a bounce
in capital spending by cash-rich U.S. companies, then U.S.
yields may get pushed up again before a long holiday weekend
in Britain and the United States.

* Ten-year U.S. Treasury futures expiring in March 2011
(TYc1: ) were unchanged on the day, less than a point away from
the lowest level since June 3, hit last Thursday.

* In the cash market, the 10-year yield was at 3.36
percent, unchanged from late in New York on Wednesday and down
from the seven-month high of 3.57 percent reached last Thursday.

* The spread of 10-year yields over 2-year yields was at
271 basis points, narrowing about 8 basis points in the past
week but still 63 basis points wider in the quarter.

* In the past week, the Federal Reserve has bought $33.2
billion of Treasuries and $1.6 billion of inflation-protected
Treasury securities as part of a program to keep market rates
down and support the U.S. economy. [ID:nN20EDTABL]

* Next purchase according to the plan will not be until
next Tuesday, removing an impediment to higher U.S. yields.

(Reporting by Kevin Plumberg; Editing by Tomasz Janowski)


TREASURIES-Steady ahead of U.S. economic data dose