TREASURIES-Rise in Asia as stocks fall, data eyed

By Rika Otsuka

TOKYO, Oct 17 (Reuters) - U.S. Treasuries rose in Asian trading on Wednesday as a fall in regional equities markets prompted investors to shift money from stocks to save-haven government debt.

Treasuries were also supported by lingering concerns over the credit front after disappointing earnings and outlooks from big U.S. banks such as Wells Fargo & Co (WFC.N: Quote, Profile, Research, Stock Buzz) the previous day indicated that credit shortages continue to hurt banks.

Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) on Monday reported the largest profit decline in three years as third-quarter profit plunged due to losses from subprime and leveraged loans and other areas.

"Until now, people were believing the credit market was improving," said Hiroki Shimazu, market economist at Mizuho Securities. "The truth is the market has stopped worsening but that's about it."

The plan by Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz), Citigroup and JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) to pool funds in an attempt to prevent the dumping of billions of dollars of bonds linked to subprime mortgages also underscored troubles in the credit market.

Benchmark 10-year Treasuries rose 2/32 in price to yield 4.647 percent <US10YT=RR>, down 1 basis point from 4.657 percent in late U.S. Trade on Tuesday.

Two-year notes edged up 1/32 in price to yield 4.122 percent <US2YT=RR>, falling nearly 2 basis points from 4.139 percent.

Ten-year Treasury note futures climbed 2.5/32 to 108-28/32 TYv1.