TREASURIES-Steady in Asia, readying for payrolls

TOKYO, Feb 4 (BestGrowthStock) – U.S. Treasury debt prices recouped a
little ground in Asian trade on Thursday, after a fall the
previous day and as Asian share markets eased, with the focus on
key U.S. jobs data at the end of the week.

* A payrolls report on Friday showing some jobs growth could
depress bond prices if traders take the view an interest rate
rise is closer than thought, while the market is also preparing
for supply next week.

* Non-farm payrolls are forecast to have risen by 8,000 in
January, according to a poll of the 20 people who have given the
most accurate predictions in recent Reuters polls, though a wider
poll of 80 predicts a gain of 5,000, see [ID:nN03175623].
Employers cut 85,000 jobs in Dec after a gain of 4,000 in Nov.

* The market is marking time ahead of the payrolls data, one
trader at a European bank in Tokyo said, but it seems to be
positioned fairly neutrally for the numbers. “An outlying number
could produce a nice move one way or the other,” the trader said.

* The market also faces $81 billion in quarterly refunding
next week with 3- and 10-year notes and 30-year bonds up for
sale.

* The sale of 10- and 30-years is likely to create the most
uncertainty and any rise in bond prices after the jobs data could
be limited, the trader said.

* Before Friday’s monthly figures, weekly jobless claims are
due at 1330 GMT on Thursday, with forecasts for 460,000 new
filings compared with 470,000 the prior week. Q4 productivity and
unit labour costs are due at the same time, followed by Dec
factory orders at 1500 GMT.

* Stock markets around Asia eased after U.S. stocks (Read more about the stock market today. ) mostly
fell the previous day, with Japan’s Nikkei (.N225: ) down 0.5
percent and the MSCI index of Asian shares outside Japan
(.MIAPJ0000PUS: ) falling 0.8 percent.

* March 10-year note futures (TYv1: ) rose 1/32 to 117-19.5/32,
after falling on Wednesday.

* The 10-year note (US10YT=RR: ) rose 3/32 in price to yield
3.695 percent, down just over 1 basis point from late U.S. trade
and below a two-week high above 3.70 percent.

* The spread between the 10- and two-year note yields stood
at about 282 basis points, down from a record wide at about 288
bps in January, but more than 273 bps at the end of last month.

* The 30-year bond (US30YT=RR: ) rose 4/32 in price to yield
4.630 percent, down almost 1 bp from late U.S. trade.

Stocks

(Reporting by Charlotte Cooper; Editing by Joseph Radford)

TREASURIES-Steady in Asia, readying for payrolls