JAPAN/CHINA: ### POV: Good Japanese......>

US TSYS/3Y: JAPAN/CHINA: ### POV: Good Japanese and Chinese buying should

surface at next week's 3/10/30-year US Treasury auctions that begin Tuesday.

Japanese accts feel US economy will bump along near-term and so the Fed may be

on hold, so they are buying reportedly including Japanese Post Bank (Kampo) and

mega-banks, said traders. Japanese accounts did good buying in Tsys in the most

recent week as Japanese MOF data showed net buyers of foreign bonds of Y106.70

(US$9.6B).

- Chinese demand also will be expected at the 3/10/30-year auctions. "The China

foreign exchange reserves and their Treasuries holdings are both growing," said

one trader. "They tend to buy the whole curve" in Treasuries. 

- Others expected European demand at the auctions too, since Treasuries remain

"cheap to the European debt" and offer more yield to yield-starved investors,

said one trader.

- On a related note, Japanese accounts such as Kampo (Japanese Post Bank) and

Japanese mega-banks "tend to center in on the 7-year note to 10-year notes" in

their Treasuries buying, said observers.