TREASURIES-Edge down but flight to quality limits losses

TOKYO, Feb 8 (Reuters) - U.S. Treasuries slipped in Asia on Monday but losses were limited as persistent worries over fiscal troubles in the euro zone and a weaker-than-expected U.S. jobs report last week supported demand for government debt.



* Investors were also bracing for the Treasury's $81 billion refunding this week, comprised of a $40 billion three-year note auction on Tuesday, a $25 billion 10-year note sale on Wednesday and a $16 billion 30-year bond auction on Thursday.



* 'The Treasury market is expected to retain its firm trend helped by a flight-to-quality move in light of the losses in U.S. payrolls,' said Yasutoshi Nagai, chief economist at Daiwa Securities SMBC. 'Also, the on-going debt problems in Europe and worries about bank regulation will keep investors away from taking risks, such as buying stocks.'



* Ministers from the Group of Seven industrialised nations said over the weekend they backed the notion of a global tax on banks to help pay for financial bailouts. But there was no agreement on a specific design.



* T-note futures dipped 7.5/32 to 118-20/32. The benchmark 10-year notes edged down 1/32 in price to yield 3.585 percent, up about a basis point from late New York trade on Friday.



* The two-year notes were little changed in price to yield 0.7753 percent, while the 30-year bonds were down 4/32 in price to yield 4.530 percent, up about a basis point.



* In addition to the auctions this week, the market will digest data on December wholesale inventories, December U.S. trade, January retail sales and jobless claims.



(Reporting by Kaori Kaneko)

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