TREASURIES-Steady to weaker in Asia, Fed meeting, auctions eyed

* Wait-and-see mood prevails before Fed meeting

* Fed's stance on economy in focus after long string of data

* Bonds capped ahead of 10- and 30-year auctions this week

By Shinichi Saoshiro

TOKYO, Aug 4 (Reuters) - U.S. Treasuries were steady to slightly weaker in Asia on Monday, with the market capped as investors looked ahead to a Federal Reserve meeting and debt auctions later in the week.

Treasury prices rose slightly on Friday, lifted by a decline in equities, a rise in the U.S. unemployment rate to its highest in four years and higher oil prices.

But bond gains were limited as other data released throughout the week did not paint a completely bleak picture for the economy, leaving investors to believe the Fed will stand pat on monetary policy for the near future.

"Treasuries were likely buoyed by short-term incentives such as index adjustments and bargain hunting last week, but in the long run we expect yields to rise as prospects for the U.S. economy are not entirely pessimistic," said Yasutoshi Nagai, chief economist at Daiwa Securities SMBC.

Friday's data showed that 51,000 U.S. jobs were eliminated in July, lower than the market forecast for a decline of 75,000. [ID:nN01429062]

A separate report released on Friday showed U.S. factory activity held steady in July, better than expectations for a contraction in the sector. [ID:nN01457643]

In light of last week's data, the focus is on the Fed's statement at its policy meeting on Tuesday.

"The Fed statement may not be too bearish on the economy, and bond yields could rise if the Fed again indicates that downside risks to growth have diminished," said Nagai at Daiwa Securities SMBC.

Analysts said the Fed statement could partially sway sales of 10-year notes and 30-year bonds scheduled this week.

Benchmark 10-year notes US10YT=RR fell 6/32 in price from late U.S. trade on Friday to yield 3.962 percent.

Two-year notes US2YT=RR were unchanged in price to yield 2.507 percent.

September 10-year futures TYv1 fell 1.5/32 to 114-31.5/32. (Editing by Michael Watson)