TREASURIES-30-year prices erase losses before auction

NEW YORK, Oct 11 (Reuters) - Prices on U.S. 30-year Treasury bonds turned higher midday Thursday, erasing earlier losses ahead of a $13 billion auction of 30-year supply.

The timing of the market move was similar to what occurred on Wednesday in advance of a $21 billion 10-year note sale. Analysts attributed Wednesday's rebound to trades aimed at forcing participants who had bet against 10-year notes to buy them back in order to close out their "short" bets.

The 30-year Treasury bonds last traded 6/32 higher in price to yield 2.877 percent, down 0.7 basis point from late on Wednesday.

The long bonds were down as much as 29/32 in price with a 2.931 percent yield earlier.

(Reporting by Richard Leong; Editing by Leslie Adler)

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