LONDON, Jan 22 (Reuters) - U.S. bond prices slipped on Tuesday as a strong German market sentiment survey and a U.S. Republican proposal for a limited rise in the debt ceiling curbed demand for safe-haven assets.
* Germany’s ZEW analyst and investor sentiment survey beat expectations with a sharp rise for the second month in a row, in a sign the euro zone crisis is no longer hitting Europe’s largest economy as hard as in late 2012.
* In Washington, Republican leaders in the House of Representatives said they aim to pass on Wednesday a measure that would allow the government to borrow the money it needs to pay its bills for nearly four months more, to May 19.
* Some investors interpreted the proposal as a sign of Republicans softening their tone in the negotiations, but the market reaction was limited as there was uncertainty over whether the Democrats would accept it.
* Ten-year T-note yields were last 3.7 basis points higher on day at 1.8770 percent. T-note futures were 8/32 lower at 131-57/64.
* “We’re waiting for further details on the debt limit debate,” said Nick Stamenkovic, bond strategist at RIA Capital Markets in Edinburgh. “We’re stuck in a narrow 1.80-1.90 percent range at the moment (in 10-year yields), and as long as we don’t see an agreement I can’t see them getting out of that.”
* Traders said the Republican proposal mainly hit safe-haven assets on Monday, but U.S. Treasuries were catching up with the move after being shut in the previous session in observance of Martin Luther King Jr. Day.
* A trader said the rise in yields on Tuesday was limited by an announcement by the Bank of Japan that its open-ended commitment to buy assets would only kick in next year, disappointing those who expected more aggressive measures.