10-Year Notes Slightly Dip in Asia; Fed Meeting Awaited

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Benchmark U.S. Treasuries were slightly lower in Asia on Tuesday ahead of debt sales, though moves were small before the U.S. Federal Reserve's meeting beginning later in the session at which more easing steps are expected.

The Treasury will sell $32 billion in three-year notes on Tuesday, followed by $21 billion in 10-year notes on Wednesday, and then $13 billion in 30-year bonds on Thursday.

Yields on 10-year Treasuries were slightly higher at 1.618 percent on Tuesday in Asian trade, compared to 1.615 percent in late U.S. trade on Monday.

Last week, benchmark yields fell as low as 1.564 percent.

Yields on 30-year Treasuries edged down to 2.801 percent from 2.816 percent on Monday.

After its two-day meeting, the Fed is expected to announce it will buy $45 billion per month of longer-dated Treasuries beginning in January to replace its "Operation Twist" stimulus program, which expires at the end of December.

"There will likely be selling ahead of Wednesday's 10-year sale, with yields unlikely to move toward last week's lows unless there is some negative development on the 'fiscal cliff,'" said a fixed-income fund manager at a Japanese asset management firm.

The White House held more talks with Republicans on Monday to try to break the budget stalemate, but neither side showed any public signs that they were ready to give ground.

The talks picked up pace after House of Representatives Speaker John Boehner met with President Barack Obama on Sunday, raising hopes of progress.

(Read more: Boehner: Obama Walking Economy to Edge of 'Cliff')