TREASURIES-U.S. bonds inch up a day before GDP data, Fed view
* Second-quarter GDP, Fed statement, refunding details on Wednesday
* Treasury refunding details might include selling fewer bonds
* Fed statement to be scrutinized for timing of tapering
* July U.S. jobs report due Friday seen as key to trading
NEW YORK, July 30 (Reuters) - U.S. Treasuries prices edged higher on Tuesday as traders positioned for the release of second-quarter U.S. economic growth data, a Federal Reserve policy statement and the Treasury's next refunding announcement, all due on Wednesday. Trading so far this week has occurred in a tight range. "We are definitely in a wait-and-see mode this week," said Wilmer Stith, co-manager of the Wilmington Broad Market Bond Fund in Baltimore. "We get the statement from the FOMC tomorrow and that will lay out - for at least 48 hours until we get the employment data on Friday - what the committee's ideas are with regard to tapering the Fed bond purchases." Since the timing, pace, and actuality of any reductions in bond purchases depends on what data reveal about U.S. economic growth and unemployment, the market is focused on data releases like the second-quarter gross domestic product report due at 8:30 a.m. (1230 GMT) on Wednesday and the July U.S. employment data due at the same time on Friday. The Treasury's quarterly refunding announcement on Wednesday has also attracted unusually intense interest.
Some analysts expect the Treasury to cut coupon-bearing debt sales for the first time since September 2010 as a shrinking federal budget deficit reduces funding needs. Traders expect the first cuts in issuance to be in the shortest maturities. Less short-term debt should support prices and keep borrowing costs down for the federal government whose deficit, while on track to shrink this year, remains elevated from its level before the 2007-2009 recession, analysts said. People are most focused on "the size of the three-year note issuance and the Treasury's guidance for 2s and 5s throughout the quarter," said Thomas Simons, money market economist at Jefferies & Co. in New York. The Treasury Department will release its quarterly refunding details on Wednesday at 8:30 a.m. (1230 GMT). The Conference Board's consumer confidence index, which showed consumers' improved view of their current situation was undercut by less confidence in the outlook six months from now, gave slight support to Treasuries. S&P/Case-Shiller home price data released Tuesday had no discernible market impact. Other data of keen interest to the market are the ADP's private-sector employment report on Wednesday, and the Institute for Supply Management's manufacturing index on Thursday. The benchmark 10-year Treasury note rose 5/32 in price with its yield easing to 2.59 percent from 2.61 percent late on Monday. The Federal Reserve Bank of New York said it purchased $1.464 billion in Treasury coupons with maturities ranging from February 15, 2036 to November 15, 2042.