TREASURIES-Steady in Asia ahead of week of supply

TOKYO, Oct 25 (BestGrowthStock) – U.S. Treasury debt prices held
steady in Asian trade on Monday with futures firm and the 30-year
bond slightly extending gains seen on Friday.

* The December future on the 10-year note (TYv1: ) rose 2/32 to
126-15.5/32 after slipping at the tail end of last week. Share
markets in Asia were broadly firmer although Japanese stocks fell
as the yen rose against the dollar after a G20 weekend statement
that markets took as a signal for more dollar weakness, while S&P
futures (SPc1: ) rose 0.8 percent.

* The Treasury Department auctions $109 billion in
coupon-bearing supply this week, including a $10 billion sale of
five-year Treasury Inflation-Protected Securities on Monday.

* The 10-year note (US10YT=RR: ) rose 4/32 in price to yield
2.547 percent, down about 1.5 basis points from late U.S. trade.
The yield was just below its 55-day moving average on the
technical charts which has acted as a downtrend line since late
April and came in at 2.591 percent on Monday. The spread between
2-year and 10-year yields was steady at 219 basis points.

* Analysts at Deutsche Bank said in a weekly note they
doubted the Federal Reserve had reached consensus on what form
more stimulus might take, ahead of its meeting next week at which
many expect it will announce more quantitative easing.

* They expected a compromise “buy as you go” strategy on
asset purchases that would be data dependent and subject to
review later, with an initial amount that had no pre-commitment
to an ultimate buying target, but that the Fed would be expected
to move more aggressively later.

* Some Fed officials speak on Monday, with Fed Chairman Ben
Bernanke giving welcoming remarks at a function at 1230 GMT and
New York Fed President William Dudley speaking at 1430.

* Analysts at Goldman Sachs said late last week they expect
an announcement of $500 billion or slightly more in asset
purchases over a period of about six months but that eventually
the Fed might buy around $2 trillion.

* The 30-year bond (US30YT=RR: ) rose 9/32 in price to yield
3.918 percent, down 1.5 basis points from late U.S. trade.
(Reporting by Charlotte Cooper; Editing by Joseph Radford)

TREASURIES-Steady in Asia ahead of week of supply