TOKYO, Sept 26 (Reuters) - U.S. 10-year Treasuries rose in Asia on Wednesday, catching a tailwind from weaker equities after unrest in Spain underlined the problems facing the euro zone and sapped investor appetite for riskier assets
* Protesters clashed with police in Madrid on Tuesday, as Spain prepared for a new round of unpopular austerity measures in the 2013 budget.
* The MSCI index of Asia-Pacific shares outside Japan slid 1 percent to its lowest since Sept. 14.
* On the supply front, the Treasury will sell $35 billion in five-year notes on Wednesday and $29 billion in seven-year notes on Thursday.
* An auction of $35 billion in new two-year notes on Tuesday garnered solid demand in line with expectations, pricing at a high yield of 0.273 percent.
* “It’s the end of the quarter, so that should help demand at the auctions, as well as the climate of uncertainty that is prompting investors to pull their cash out of risk assets (and into bonds),” said a fixed-income fund manager at a Japanese asset management firm in Tokyo.
* The yields on 10-year notes slipped to 1.66 percent from 1.69 percent in late U.S. trading on Tuesday.
* The 30-year yield fell to 2.84 percent from 2.87 percent in late U.S. trade.
* U.S. economic data on Tuesday showed signs of improvement, which could undermine demand for bonds. U.S. home price rose for a sixth straight month in July and consumer confidence increased in September.