TREASURIES-Rise in Asia, focus on equities and data

By Masayuki Kitano

TOKYO, May 12 (Reuters) - U.S. Treasuries edged higher in Asian trading on Monday as concerns about fallout from credit market turmoil triggered buying of "safe haven" Treasuries.

Treasuries had edged higher on Friday, drawing support from news late on Thursday that American International Group, the world's largest insurer, posted a record $7.8 billion quarterly loss.

But while concerns about financial institutions' losses from the credit market turmoil may linger, such worries may not be enough to send Treasuries sharply higher, said Hiroki Shimazu, a market economist for Mizuho Securities.

Treasuries are likely to trade near recent ranges over the next few weeks, taking their cue from moves in share prices and forthcoming economic data, Shimazu said.

"Some traders say a phase of temporary optimism is drawing to a close, but others say an improvement from the pessimism seen in March remains in place," Shimazu said, referring to market views on the fallout from credit market turmoil.

"Unlike the situation back in March, it's not as if views among market players are tilted overwhelmingly in one direction," Shimazu said. Until the end of May, yields on benchmark 10-year notes seem likely to hover near a range seen over the past month of roughly between 3.7 and 3.95 percent, Shimazu said.

Benchmark 10-year Treasury notes rose 4/32 in price to yield 3.762 percent <US10YT=RR>, down about 2 basis points from late U.S. trading on Friday. The two-year note was steady in price with a yield of 2.239 percent <US2YT=RR>.

Treasuries will take their cue this week from a slew of economic data including April retail sales on Tuesday. Other data due this week includes the consumer price index and housing starts as well as a reading on consumer confidence.