TREASURIES-Prices gain slightly in safe-haven buying

* ECB reportedly mulling interest thresholds for bond buys
* US benchmark yields up over 40 bps since late July
* Investors look ahead to Fed minutes for stimulus clues

By Chris Reese
NEW YORK, Aug 20 (Reuters) - U.S. Treasury debt prices edged
higher on Monday as global stocks slipped bolstering the
safe-haven appeal of U.S. government debt after the European
Central Bank squashed speculation on a plan to contain the euro
zone debt crisis.
Treasuries began the day lower in price after German
magazine Der Spiegel said the ECB was considering buying debt
issued by vulnerable countries if their interest rates rose too
high.
But Treasuries turned higher after an ECB spokesman said it
was misleading to report on decisions that still had not been
taken. Also, Germany's Bundesbank on Monday reiterated its
opposition to bond purchases.
Safe-haven demand gave Treasuries a boost, and benchmark
10-year Treasury notes last traded 4/32 higher in
price to yield 1.80 percent, down from 1.82 percent late Friday.
Benchmark note yields have risen over 40 basis points from a
record low of 1.38 percent hit on July 25 as slightly upbeat
U.S. data damped expectations of a new round of economic
stimulus from the Federal Reserve and after the ECB raised the
prospect of more measures to tackle the euro zone debt crisis.
Some analysts said the recent selling may have run its
course.
"While rates may have rebounded a little, there are several
reasons to be skeptical," said Dimitri Delis, fixed income
strategist at BMO Capital Markets in Chicago.
"First, the European crisis has not been resolved, but most
likely is taking a break from making headline news as August is
a popular month for vacationing. Second, while some U.S.
economic indicators have shown marginal improvements, others
have been painting a more dire picture," Delis said.
Traders are looking to the minutes of the Federal Reserve's
last policy meeting due for release on Wednesday to gauge how
inclined policymakers are to launch a further round of economic
stimulus.
In the meantime, 30-year Treasury bonds were
trading 13/32 higher in price to yield 2.91 percent, down from
2.93 percent late Friday.