TREASURIES-10-yr note dips in Asia on profit-taking
* The 10-year note dipped around 6/32 in price to yield
2.176 percent , compared with 2.155 percent in New
York late on Monday. In the stock market, S&P futures rose 0.2
percent .* Treasuries were lightly supported early in Asian trade
after Moody’s warned it may slap a negative outlook on France’s
Aaa credit rating in the next three months if the country fails
to make progress on crucial fiscal and economic reforms.* Profit-taking then kicked in as a batch of Chinese data
came in broadly in line with expectations, confirming that
China’s economic growth was moderating but not weakening
sharply.* The 10-year note is now hovering close to support around
2.266 percent, the 38.2 percent retracement of a July to
September rally in the maturity. More support is clustered near
2.3 percent to 2.31 percent, an area containing a few daily
highs hit in late August.* Focus turns to Fed chairman Bernanke as he speaks on “The
Effects of the Great Recession on Central Bank Doctrine and
Practice” before the Federal Reserve Bank of Boston 56th
Economic Conference, Boston, Massachusetts at 1715 GMT.* The Treasury Department holds its weekly sale of four-week
bills and sells 52-week bills at 1530 GMT.
