TREASURIES-U.S. 10-yr bond yields nudge down after rally

TOKYO Aug 8 (Reuters) - U.S. 10-year Treasury bond yields edged lower on Wednesday, coming off a 5-week high hit the day before as demand for safe-haven U.S. debt subsided on hopes that policymakers will act to help resolve the euro zone's debt crisis.

* Yields on U.S. Treasuries have moved away from historic lows hit on July 25, and continued to climb after U.S. jobs data beat forecasts last Friday, while markets expected the European Central Bank to stand by its pledge to defend the euro.

* Ten-year Treasuries moved up 3/32 in price with a yield of roughly 1.6197 percent in Asian trade, easing from the high around 1.6420 hit on Tuesday. The peak marked the highest level the yields reached since July 2.

* "For now, markets continue to be driven by expectations that a powerful ECB response is looming once the governments come to terms with asking for help," analysts at BNP Paribas wrote in a research note.

* On top of hopes the ECB will soon start buying bonds to ease bond market jitters, sentiment was boosted by Italy's Prime Minister Mario Monti winning a confidence vote on Tuesday on a bill to cut spending, which comes in addition to his austerity package passed in December.

* However, the deeper uncertainty gripping global investors still keeps the yields relatively low, with the yield on the benchmark 10-year Treasuries still not that far off a record low of 1.38 percent plumbed in late July.

* Investors prepare for a U.S. debt auction of $24 billion of 10-year notes at 1700 GMT. The Treasury department will also sell $16 billion of 30-year bonds on Thursday to meet its quarterly refunding needs.