TREASURIES-Edge higher in Asia before Bernanke

By Rika Otsuka

TOKYO, Feb 14 (Reuters) - U.S. Treasuries edged higher in Asia on Thursday, as investors awaited comments from Federal Reserve Chairman Ben Bernanke later in the day for clues on the future path of the central bank's monetary policy.

Bernanke testifies on the U.S. economy and financial markets before the Senate Banking Committee at 1500 GMT.

In Bernanke's comments, investors will look for hints of how much the Fed has lowered its expected outlook for economic growth and how much further the central bank is willing to lower interest rates.

The Fed has slashed interest rates to 3 percent from 5.25 percent in the last five months in a bid to keep the world's biggest economy from falling into a recession. In January alone, the central bank lowered the benchmark federal funds rate by a hefty 125 basis points.

Akihiro Nishida, senior economist at Mitsubishi UFJ Securities, said comments from Bernanke are likely to support the Fed's current aggressive policy style to stave off a deeper economic slump.

"If his comments are in line with the Fed's policy stance, they will be a positive factor for Treasuries, boosting shorter-dated notes in particular," Nishida said.

Benchmark 10-year notes <US10YT=RR> rose 5/32 in price to yield 3.715 percent, down 2 basis points from 3.736 percent in late U.S. trade on Wednesday.

Two-year notes <US2YT=RR> were unchanged in price to yield 1.909 percent, down 1 basis point from late New York trade and hovering in reach of the lowest level in roughly four years hit last month.