SINGAPORE, Oct 18 (Reuters) - U.S. 10-year Treasuries trimmed a bit of their earlier gains on Thursday after a batch of Chinese data met market expectations or came in slightly better, easing some concerns about the outlook for the world's second-largest economy.
* The 10-year yield touched an intraday high of 1.82 percent at one point and last stood at 1.813 percent, having risen from around 1.808 percent following the release of the Chinese data. The 10-year yield was still down 1 basis point compared to late U.S. trade on Wednesday and the 10-year notes were still up around 2/32 in price.
* While the Chinese indicators such as third-quarter gross domestic product were not strong, they were not as bad as some had feared, said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation in Singapore.
Economic activity in China still looks sluggish however, even though some of the data such as industrial output for September did come in above market expectations, he added.
"You could say the data was good, but it's not as if you can view this as a sign of a rebound," Okagawa said.
* China's economy grew 7.4 percent in the July-September quarter. That reading, which was in line with market expectations, marked the seventh straight quarter of a slowdown in China.
* The 10-year Treasury yield had hit a one-month high around 1.824 percent on Wednesday after data showed groundbreaking on new U.S. homes surged in September to its fastest pace in more than four years.
* The 10-year yield may rise further in the near term if forthcoming U.S. indicators are strong, said Tomohisa Fujiki, interest rate strategist for BNP Paribas Securities in Tokyo.
* Still, the recent improvement in economic data is unlikely to immediately affect the Federal Reserve's stance of keeping interest rates low for an extended period, and Treasuries are likely to gradually regain ground, starting from the shorter end of the yield curve, Fujiki said.
"The possibility of more bond-selling factors coming to the fore in the short term cannot be ruled out, but my sense is that we may have finally reached decent levels to consider buying," he added.
* There is more data coming up later on Thursday, including initial jobless claims and the Philadelphia Fed's gauge of factory activity in the mid-Atlantic region. ((email@example.com +65-6417-4682)(RM:firstname.lastname@example.org )