TREASURIES-US Treasuries dip after report of China urging banks to ease exposure

SINGAPORE, Feb 9 (Reuters) - U.S. Treasuries prices slipped on Monday after a news report said China had urged banks to curb their holdings of U.S. government bonds, citing concentration risk and market volatility.

Bloomberg News said officials in China urged banks to limit purchases of U.S. government bonds and instructed those with high exposure to pare down their positions, citing people familiar with the matter.

The directive does not apply to state holdings of U.S. Treasuries, Bloomberg reported, adding that the guidance reflects growing wariness among officials that large holdings of U.S. government debt may expose banks to sharp swings.

The yield on benchmark U.S. 10-year notes US10YT=RR was up 3 basis points at 4.2359%.