RPT-TREASURIES-Bonds slip as stocks rebound before 10Y auction

* Wall Street rebound saps safety bid for bonds

* Traders make room for record $23 bln 10-year note sale

* Eyes on Fed's clues to future of Treasuries purchase

(Updates market action, quote)

By Richard Leong

NEW YORK, Aug 12 (Reuters) - U.S. Treasury debt prices slipped on Wednesday, as a rally on Wall Street reduced a safety bid for bonds and traders made room for $23 billion in 10-year government note supply to be sold.

Most investors moved to the sidelines ahead of the Federal Reserve's policy statement, which may contain clues to whether the U.S. central bank may tweak its Treasury purchases, the pillar of its quantitative easing stand to revive the economy.

Stocks' rise is "pushing down bonds. People are also setting up for the 10-year auction," said Mark Pawlak, market strategist at Keefe, Bruyette & Woods in New York.

The Treasury Department's 10-year note sale followed a stellar $37 billion three-year auction on Tuesday. The Treasury will complete its record $75 billion quarterly refunding on Thursday with the sale of $15 billion 30-year bond sale, the largest ever for this maturity.

"The 10-year auction may be handicapped ahead of the Fed statement," Pawlak said.

The price on benchmark 10-year Treasury note US10YT=RR traded down 6/32 at 95-12/32, erasing an earlier 9/32 gain.

Its yield which moves inversely to its price was 3.70 percent, up from 3.67 percent late on Tuesday.

The three major U.S. stock indexes .DJI .SPX .IXIC were up more than 1 percent on strength in financial and semiconductor shares. Wall Street slumped on Tuesday on doubts about a recovery in the banking sector and the overall economy. For more, see [ID:nN12106007] (Editing by Theodore d'Afflisio)