TREASURIES-U.S. 10-year notes steady after sell-off, seen shaky
SINGAPORE, Jan 28 (Reuters) - U.S. 10-year Treasuries held steady on Monday after a sell-off last week on news European banks will repay more emergency loans than expected, suggesting that the region's banking sector is on the mend.
* Banks will repay more than 130 billion euros of three-year loans to the European Central Bank this week, opting to hand back early more cash than expected in a sign at least parts of the financial system are returning to health.
* The news had triggered a sell-off in safe haven Treasuries late last week. The 10-year yield jumped nearly 10 basis points on Friday, the biggest one-day rise in the 10-year yield since October, according to Reuters data.
Ten-year Treasuries held steady in price in Asia on Monday with a yield of about 1.949 percent, little changed from late U.S. trade on Friday.
* If 10-year Treasuries show firmness during Monday's U.S. trading, that might help bring some buyers into the market, said a trader for a U.S. brokerage in Tokyo.
Still, the speed of the sell-off seen on Friday may have caused pain to some traders and could make them cautious about snatching up Treasuries at this point, he said.
"I wonder if people can really consider buying. If anything, there is probably more concern over whether there might be another sell-off today, with people wondering what they should do if that happens," the trader said.
* The U.S. Treasury is due to sell $99 billion in new debt this week, including $35 billion in two-year notes on Monday.