TREASURIES-Edge lower in Asia, more data eyed

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TOKYO | Wed Nov 18, 2009 12:37am EST

TOKYO Nov 18 (Reuters) - U.S. Treasuries edged lower in Asia on Wednesday but maintained a firm tone after rising the previous day on unexpectedly weak data which reinforced the outlook for low interest rates.

* Treasuries rose on Tuesday as weaker-than-expected U.S. industrial output and a tame producer price index suggested the economy's recovery from a severe recession was losing some steam as government stimulus faded.

* Activity in Asian trading was slow as investors awaited more data including U.S. consumer inflation price figures due later in the day, which are expected to show that a slow economic recovery is keeping upward price pressure at bay.

* The core consumer price index, due at 1330 GMT, is forecast to have risen 0.1 percent in October after a 0.2 percent increase in September.

* October housing starts are also due at 1330 GMT and are expected to show a slight increase to an annualised 0.6 million from 0.590 million in September.

* T-note futures edged down 1.5/32 to 119-22.5/32 TYv1. The benchmark 10-year notes were steady in price to yield 3.334 percent US10YT=RR, little changed from late U.S. trade on Tuesday.

* Thirty-year bonds fell 2/32 in price to yield 4.263 percent US30YT=RR, up a basis point. The two-year notes were little changed in price to yield 0.778 percent US2YT=RR. (Editing by Edwina Gibbs)

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