TREASURIES-Rise in Asia as dealers pick up futures

TOKYO, April 6 (Reuters) - U.S. Treasuries rose in Asia on Tuesday with dealers covering short positions in bond futures following a market slide the previous day, pulling the benchmark 10-year yield further down below 4 percent.



* Japanese investors are expected to follow later, scooping up the bonds, after the 10-year yield rose above 4 percent the previous day for the first time since June 2009, a Treasury trader at a Japanese trust bank said.



* 'There is a growing view that the 10-year yield is set to rise more to 4.1 percent or 4.2 percent in the next few months. But we believe Treasury prices are probably already at levels attractive enough for bargain hunting,' the trader said.



* Treasuries drew marginal support from Greek debt concerns which pushed the euro lower with traders citing a report by Market News International that Greece's government wants to amend the deal for financial aid reached at a European Union summit.



* Treasuries fell on Monday as trading desks returned to full strength after public holidays and traders acted on the generally upbeat jobs data released on Friday which sparked optimism about the economic recovery.



* T-note futures were up 5.5/32 to 115-05.5/32, recovering from eight-month lows hit the previous day.



* Ten-year notes rose 4/32 in price to yield 3.972 percent , down 2 basis points from late U.S. trade on Monday when the yield climbed as high as 4.013 percent, its highest since October 2008.



* Treasuries prices gained and yields fell across the curve. Two-year notes rose 1/32 in price to yield 1.165 percent , down about 2 basis points. Thirty-year bonds were up 6/32 in price to yield 4.826 percent, down a basis point.



* Tuesday's $40 billion auction of three-year notes, the second in a week of heavy issuance, is expected to draw decent demand as higher yields may attract new buyers, analysts said.



* In all, the Treasury will issue $82 billion in new supply this week. Traders said the outcome of the auctions of 10-year notes and 30-year bonds, set for Wednesday and Thursday, would be harder to predict.



* Minutes from the Federal Open Markets Committee's March 16 meeting are scheduled to be released on Tuesday around 1800 GMT, an hour after the three-year auction.

(Editing by Joseph Radford)

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