U.S. Treasury futures drifted lower in Asia on Tuesday in very light trade as dealers prepared to absorb $28 billion of five-year paper and investors awaited a slew of year-end economic figures.
* Activity was limited due to a national holiday in Japan and with many market players moving to the sidelines for Christmas and other year-end holidays.
* Data later in the day expected to show the final reading of third-quarter U.S. gross domestic product unchanged with a 0.5 percent annualised contraction. New and existing home sales in November are both seen posting deeper declines.
* The Treasury will sell $28 billion of five-year notes after a record $38 billion offer of two-year notes the previous day, highlighting the government's big financing needs even before President-elect Barack Obama launches what is expected to be hefty fiscal spending next year.
* In when-issued trade, the yield on the new five-year issue was quoted about 8 basis points above than the current yield, according to data from TradeWeb.
* March T-note futures dipped 1/32 to 126-28.5/32, with less than 1,000 lots changing hands.
* Ten-year notes edged up 2/32 in price to yield 2.173 percent, down nearly a basis point from late U.S. trade. But five-year notes were a shade weaker to yield 1.428 percent, up a basis point.
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