NEW YORK, Nov 4 (Reuters) - U.S. Treasury prices slipped in thin trade on Tuesday evening, reacting more to the rise of Asian stocks than to the U.S. election, after Democrat Barack Obama was projected to win Pennsylvania, a big step in his race for the White House.
With financial markets betting on an Obama victory in the U.S. presidential election, attention turned to Asian stocks markets and flows into riskier assets curbed the safe haven bid for government debt, analysts said.
"We have seen the Asian stock markets rally and that is what is driving Treasuries down; just money flowing into equities," said Andrew Richman, managing director of SunTrust's personal asset management division based in West Palm Beach, Florida.
"Although it is very early and we could still see an upset, it looks as though Obama is going to win, which was highly expected," Richman said.
About 9 p.m. New York time, the benchmark 10-year Treasury note's price traded down 10/32 for a yield of 3.76 percent.
The 2-year note's price traded down 4/32 for a yield of 1.44 percent.
Both stocks and government bonds had rallied during the U.S. day on Tuesday and some of the moves in wafer thin overnight trade may have been profit taking after those rallies.
In Tuesday's regular session earlier, Wall Street stocks had their biggest Election Day rally ever. On Tuesday evening, U.S. stock index futures dipped.
Treasuries could come under more pressure on Wednesday as bond investors' focus turns to the substantial issuance slate.

With the government's scheduled refunding announcement on Wednesday, the specter of hefty debt issuance could soon reverse Tuesday's government bond market rally, analysts warned.
(Reporting by John Parry;)

((John.Parry@thomsonreuters.com ; +1 646 223 6303; Reuters Messaging: john.parry.reuters.com@reuters.net)) Keywords: MARKETS BONDS
NEW YORK, Nov 4 (Reuters) - U.S. Treasury prices slipped in thin trade on Tuesday evening, reacting more to the rise of Asian stocks than to the U.S. election, after Democrat Barack Obama was projected to win Pennsylvania, a big step in his race for the White House.
With financial markets betting on an Obama victory in the U.S. presidential election, attention turned to Asian stocks markets and flows into riskier assets curbed the safe haven bid for government debt, analysts said.
"We have seen the Asian stock markets rally and that is what is driving Treasuries down; just money flowing into equities," said Andrew Richman, managing director of SunTrust's personal asset management division based in West Palm Beach, Florida.
"Although it is very early and we could still see an upset, it looks as though Obama is going to win, which was highly expected," Richman said.
About 9 p.m. New York time, the benchmark 10-year Treasury note's price traded down 10/32 for a yield of 3.76 percent.
The 2-year note's price traded down 4/32 for a yield of 1.44 percent.
Both stocks and government bonds had rallied during the U.S. day on Tuesday and some of the moves in wafer thin overnight trade may have been profit taking after those rallies.
In Tuesday's regular session earlier, Wall Street stocks had their biggest Election Day rally ever. On Tuesday evening, U.S. stock index futures dipped.
Treasuries could come under more pressure on Wednesday as bond investors' focus turns to the substantial issuance slate.

With the government's scheduled refunding announcement on Wednesday, the specter of hefty debt issuance could soon reverse Tuesday's government bond market rally, analysts warned.
(Reporting by John Parry;) Keywords: MARKETS BONDS

(John.Parry@thomsonreuters.com ; +1 646 223 6303; Reuters Messaging: john.parry.reuters.com@reuters.net)

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