SINGAPORE, April 25 (Reuters) - U.S. 10-year Treasuries eased on Thursday, pausing from their rally this month that has been driven by weak economic data and talk that Japan's big monetary stimulus may spur buying by Japanese investors.
* Ten-year notes eased 2/32 in price to yield roughly 1.709 percent. The 10-year yield has dropped 14 basis points so far this month, putting it on track for its biggest monthly drop since July 2012.
* Treasuries rallied in early April after the Bank of Japan unleashed its sweeping monetary easing and on weak U.S. jobs data. They later pulled back but regained footing toward the middle of the month, supported by weak retail sales data and worries about financial turmoil in Cyprus.
* Their advance has stalled since then, however. The 10-year yield has mostly moved within a range of about 1.74 percent to 1.67 percent since April 15, with the exception of a short-lived dip on Tuesday to as low as 1.643 percent.
* 'The market seems a bit heavy, when you consider all the poor economic data,' said Tomohisa Fujiki, interest rate strategist for BNP Paribas in Tokyo, adding that a bounce in equities from their recent lows may be weighing on Treasuries. The S&P 500 has risen 1.5 percent this week, following last week's 2.1 percent drop.
* Capital flows data showed that Japanese investors sold a net 862.6 billion yen in foreign bonds last week, continuing a trend of fund repatriation seen so far in April.
* Seasonal tendencies suggest Japanese investors may soon start increasing their overseas asset buying, said Taisuke Tanaka, chief FX strategist at Deutsche Securities in Tokyo.
'From late April through May, pensions reallocate funds for the new fiscal year, and tend to increase purchases of foreign securities. Lifers also start putting into action the investment strategies they announce in the latter half of April,' he said in a recent research note.
Strategies announced by Japanese life insurers for Japan's financial year to March 2014, suggest that they intend to increase holdings of currency-hedged overseas bonds in response to factors such as low Japanese government bond yields, although some increase in unhedged foreign bond buying is to be expected as well, Tanaka said.
(Reporting by Masayuki Kitano; Editing by Sanjeev Miglani) Keywords: MARKETS TREASURIES ASIA/
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