TREASURIES-Bonds gain, take cue from weak stocks; U.S. GDP eyed
TOKYO Oct 26 (Reuters) - U.S. Treasuries gained in Asia on Friday, taking their cue from broadly weaker Asian stocks on concerns over corporate earnings.
* The MSCI index of Asia-Pacific shares outside Japan skidded 1.1 percent, and was set for its largest weekly decline in two months.
* The yields on 10-year notes fell to 1.796 percent from 1.828 percent in late U.S. trading on Thursday, and remained solidly below their 200-day moving average, now at 1.804 percent.
* "Until 10-year yields decisively break above 1.8 percent, we won't be convinced that the trend has changed," said a fixed-income fund manager at a Japanese asset management firm.
* Yields on 30-year bonds slipped to 2.942 percent from 2.977 percent in late U.S. trading.
* On the data front, investors await the preliminary reading of U.S. third-quarter gross domestic product later on Friday. The annualised rate of growth is seen at 1.9 percent, picking up from a 1.3 percent pace.
On Thursday, U.S. business investment showed signs of stalling in September.
* On the supply side, the U.S. Treasury sold $29 billion in seven-year notes on Thursday at a high yield of 1.267 percent. The sale's bid-to-cover ratio was 2.56, the lowest in more than three years, indicating lackluster demand.
* On Wednesday, the U.S. Federal Reserve stayed its hand as expected, holding monetary policy steady after it launched a new round of bond purchases last month.
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