TREASURIES-Slight gains on stock slide, Spain uncertainty
* Stock losses revive bid for safe-haven Treasuries
* Uncertainty about timing of a Spain bailout request cited
* Trade in narrow range before Friday U.S. payrolls data
(Updates prices, comment) By Ellen Freilich
NEW YORK, Oct 2 (Reuters) - U.S. Treasuries edged up on Tuesday as stock losses boosted the bid for safe-haven U.S. debt amid uncertainty about the timing of any bailout request by Spain.
Earlier, Treasuries had slipped as talk of Spain being willing to seek a bailout, along with an unexpected rate cut by Australia's central bank, gave riskier assets an edge over safe-haven U.S. debt.
Spain is ready to request a euro zone bailout for its public finances though not as soon as this weekend, senior sources in Europe told Reuters on Monday.
On Tuesday, Spain's Prime Minister, Mariano Rajoy, said, however, that a request for European aid was not imminent and that he had agreed with Spanish regional leaders on a fiscal consolidation path for next year.
"You're seeing Spain on the precipice of requesting aid, but there's some push-back from politicians in Germany," said Robert Tipp, chief investment strategist for Prudential Fixed Income, with $330 billion in assets under management. "Some investors (in risk assets) might be disappointed at the push-back."
Germany's Economy Minister Philipp Roesler will pay a visit to Spain's Economy Minister Luis de Guindos in Madrid on Wednesday.
An aid request from Spain would pave the way for the European Central Bank to buy Spanish bonds.
As Wall Street stocks turned lower, the benchmark 10-year note
erased a narrow loss and rose 1/32, leaving its yield at 1.62 percent, in the middle of its recent range.
The Treasury market is also in the midst of a re-evaluation as investors try to assess whether there will be a "replay of the late 1940s and early 1950s when nominal GDP growth was in the very high single digits and yet the Fed was capping 10-year yields below 2 percent," said Tipp.
"With the Fed buying more than half the long-term Treasury issuance and a multiple of the net supply of mortgages, we might see Treasury yields grind lower and lower, perhaps even through their recent lows back in July," he said.
A largely unexpected quarter-point rate cut to 3.25 percent by Australia's central bank favored risk assets over safe havens like German bunds and U.S. Treasuries early in the session.
"Australia eased, which wasn't particularly expected, so that gave the 'additional-stimulus-will-help-growth' crowd a bit of a boost," said John Briggs, Treasury strategist at RBS Securities in Stamford, Connecticut.
Still, Briggs said, the market is essentially recording small movements "within the framework of waiting for (September U.S.) payrolls data on Friday."
Economists polled by Reuters estimated nonfarm payrolls added 113,000 jobs in September.
(Editing by James Dalgleish)
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((-------------- MARKET SNAPSHOT AT 1230 EDT (1630 GMT) ---------------------
Change vs Current Nyk yield Three-month bills 0.095 (+0.010) 0.096 6-month bills 0.140 (+0.005) 0.142 Two-year note 100-01/32 ( unch ) 0.238 Five-year note 100-01/32 (+01/32) 0.615 10-year note 100-02/32 (+01/32) 1.618 30-year bond 98-21/32 (+01/32) 2.816 ))
Keywords: MARKETS USA BONDS/