U.S. Treasury prices held steady in Asia on Tuesday after bouncing back overnight with the benchmark 10-year yield falling from a near two-year high, although investors remained cautious about the Federal Reserve's plan to start rolling back its stimulus.
The yield on 10-year notes stood at 2.5442 percent, holding steady from U.S. trade of 2.54 percent. The benchmark yield rose as high as 2.667 percent, the highest since August 2011, in overnight U.S. trade.
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"We think eventually U.S. yields may go up more. But at this point the move was so rapid from 2.2 percent to 2.6 percent that it's getting to a point maybe that we are going to be stabilizing from here. In my opinion, it may go lower depending on the situation," said Tadashi Matsukawa, head of Japan fixed income at PineBridge Investments.