TREASURIES-Trim loss in Asia despite rally in gold and oil

TOKYO, Oct 26 (Reuters) - U.S. 10-year Treasury notes edged higher in Asian trading on Friday, trimming some of the losses suffered late in the U.S. trading the previous day and shrugging off gains in gold and oil.

U.S. Treasuries slipped on Thursday as stocks pared losses in a late rebound after a report quelled rumours that insurance giant American International Group (AIG.N: Quote, Profile, Research, Stock Buzz) would post a big investment write-down.

Late Thursday, the CNBC cable television channel, citing unidentified sources, reported that it was untrue that AIG would report a big securities write-down. [ID:nN25112334].

Treasuries also suffered late in U.S. trading on Thursday as Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) reported earnings that exceeded expectations, said a Treasuries trader for a U.S. investment bank in Tokyo.

After their overnight fall, Treasuries pared some losses in Asia on position squaring, market players said.

"It seems that Treasury yields are pulling back a bit because the rise in yields late in yesterday's trading was pretty rapid," said a portfolio manager for a Japanese insurer.

"It doesn't seem to be a move based on any kind of fresh factor," he said.

The 10-year Treasury note rose 4/32 in price to yield 4.372 percent <US10YT=RR>, inching towards the 4.30 percent level hit in early September that was the lowest since early 2006.

The 30-year Treasury bond rose 6.5/32 in price to yield 4.674 percent <US30YT=RR>.