TREASURIES-Bonds firm in Asia after strong auction


TOKYO, Oct 11 (Reuters) - U.S. Treasury prices were firm inAsia on Thursday after they rallied following a solid 10-yearbond auction the previous day, as uncertainty over the globaleconomic outlook pushed Wall Street shares to one-month lows.

* The yield on 10-year notes stood at 1.677 percent, little changed from the previous U.S. close, butnear its lowest level since Friday after the strong auctionresults triggered a wave of short-covering.

* Concerns over the health of the global economy andearnings downgrades led to strong demand at the sale of $21billion 10-year notes on Wednesday.

* Traders are now looking to the auction of $13 billion,30-year bonds later in the day, the last leg of this week's $66billion coupon-bearing offerings.

* "If today's 30-year bond auction turns out to be strongjust like yesterday's 10-year auction, the market is likely toadvance further," said Tomoaki Shishido, fixed income analyst atNomura Securities.

* Wall Street shares fell on Wednesday as disappointingearnings from Chevron and Alcoa enhanced worriesthat the slowdown in the global economy may force more companiesto downgrade their earnings. The S&P 500 index fell 0.6percent to a one-month closing low.

* Some market players are looking to the U.S. vicepresidential debate later in the day as President Barack Obama'svictory, once almost taken for granted in markets, is cominginto question after his weak performance in last week's debate.

(Reporting by Hideyuki Sano; Editing by Jacqueline Wong)

((hideyuki.sano@thomsonreuters.com)(+81 3 6441 1827)(ReutersMessaging: hideyuki.sano.thomsonreuters.com@reuters.net))


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