TREASURIES-Treasuries little changed in Asia before sale

TOKYO Jan 27 (Reuters) - U.S. Treasuries were little changed in Asia on Thursday, with the previous day's drop coming to a halt ahead of a seven-year auction later in the day.

* The benchmark 10-year note US10YT=RR inched up 1/32 in price to yield 3.41 percent, down a basis point from late U.S. trade on Wednesday when it rose around 10 basis points after a government report showed U.S. new-home sales rising to an eight-month high in December.

* Even so, the market drew some solace as Wednesday's $35 billion five-year note tender attracted decent demand in a positive lead up to Thursday's $29 billion seven-year offering.

* Fixed-income strategists at Barclays Capital on Wednesday noted that past auction statistics underscore strong demand in the seven-year sector, with the bid-to-cover ratio, a gauge of demand at sales, remaining high.

* The market will also look at data including U.S. durable goods orders, initial jobless claims and pending home sales due later in the day which could further signal a pick-up in economic activity.

* Reaction to the Fed's policy statement on Wednesday was limited. The U.S. central bank gave a lukewarm grade to the economy, saying it was recovering but at an insufficient rate to bring a signficant labour market improvement, a view that some traders saw as overly pessimistic. [ID:nTLAQCE72L]

* The seven-year note US7YT=RR yield stood little changed at 2.73 percent.

* The 10-year yield remained within its recent range between 3.25 percent and 3.50 percent so far this year. (Reporting by Shinichi Saoshiro; Editing by Edwina Gibbs)