Wires

TREASURIES-U.S. 10-year notes regain footing after sell-off

SINGAPORE, Oct 9 (Reuters) - U.S. 10-year Treasuries rose onTuesday as a lacklustre performance by equities in the pastcouple of sessions helped ease selling pressure that had beentriggered by a surprise drop in the U.S. jobless rate.

* Ten-year Treasuries rose about 9/32 in price to yieldroughly 1.709 percent in Asia, down 3 basis pointsfrom late U.S. trade on Friday. The 10-year yield had hit a peakaround 1.74 percent on Friday, the highest level in about twoweeks.

The U.S. bond market was closed on Monday for the ColumbusDay holiday, although the stock market remained open.

* U.S. equities have failed to gain traction even after dataon Friday showed that the U.S. unemployment rate fell to 7.8percent in September, the lowest level since January 2009. TheS&P 500 ended a tad lower on Friday and slipped 0.4 percent

on Monday.

* "The optimism that took hold after the U.S. jobs data hasnot lasted very long and you can see that in how equities havereacted," said Tomohisa Fujiki, interest rate strategist for BNPParibas Securities in Tokyo.

* At the same time, the jobs data, along with upbeatreadings on the manufacturing and services sectors released bythe Institute for Supply Management last week, have helped easeconcerns about the U.S. economy's outlook to some extent, Fujikisaid.

Such indicators posed a contrast to data released in lateSeptember such as a weak reading on durable goods orders and adownward revision to second-quarter gross domestic product, headded.

(Reporting by Masayuki Kitano; Editing by Jacqueline Wong)

((masayuki.kitano@thomsonreuters.com

+65-6417-4682)(RM:masayuki.kitano.thomsonreuters.com@reuters.net

)

Keywords: MARKETS TREASURIES ASIA/