TOKYO Dec 11 Benchmark U.S. Treasuries were
slightly lower in Asia on Tuesday ahead of debt sales, though
moves were small before the U.S. Federal Reserve's meeting
beginning later in the session at which more easing steps are
* The Treasury will sell $32 billion in three-year notes on
Tuesday, followed by $21 billion in 10-year notes on Wednesday,
and then $13 billion in 30-year bonds on Thursday.
* Yields on 10-year Treasuries were slightly
higher at 1.618 percent on Tuesday in Asian trade, compared to
1.615 percent in late U.S. trade on Monday.
Last week, benchmark yields fell as low as 1.564 percent.
* Yields on 30-year Treasuries edged down to
2.801 percent from 2.816 percent on Monday.
* After its two-day meeting, the Fed is expected to announce
it will buy $45 billion per month of longer-dated Treasuries
beginning in January to replace its "Operation Twist" stimulus
programme, which expires at the end of December.
* "There will likely be selling ahead of Wednesday's 10-year
sale, with yields unlikely to move toward last week's lows
unless there is some negative development on the 'fiscal
cliff,'" said a fixed-income fund manager at a Japanese asset
* The White House held more talks with Republicans on Monday
to try to break the budget stalemate, but neither side showed
any public signs that they were ready to give ground. The talks
picked up pace after House of Representatives Speaker John
Boehner met with President Barack Obama on Sunday, raising hopes