U.S. Treasuries gained in Asia on Wednesday after some riskier assets and most commodities inched down, as investors cautiously waited for signs that politicians are getting to grips with the European debt crisis before making bolder bets.
Plans to increase the financial firepower of the euro zone's 440 billion euro rescue fund face opposition in Germany, while a Financial Times report said that a split had opened up within the currency bloc over the terms of Greece's next bailout.
Traders said they could not take profits on U.S. bonds, which along with the dollar, have replaced gold in recent weeks as the asset of choice for safe-haven seekers, as serious doubts persist over policymakers' ability to craft a plan to deal with the crisis, given their history of bickering since Greece's debt problems erupted in 2009.
Ten-year notes rose 8/32 in price to yield 1.9520 percent , with the yield coming off an overnight peak above 2 percent. It stayed well above its more-than-60-year low of 1.674 percent hit last week.
Finland will vote on the enlargement of the EU rescue fund, the EFSF, agreed back in July later on Wednesday, while Germany's parliament votes on Thursday.