TOKYO: Treasury prices were steady in Asia on Tuesday, holding gains made overnight on concerns about slowing US growth and economic weakness in Europe.

Activity was expected to remain thin on Tuesday, with most markets in Asia and Europe closed to mark May Day holidays. Japanese markets were shut on Monday and will be off again on Thursday and Friday for the Golden Week series of holidays.

Data released on Monday raised questions about the strength of the US recovery and underpinned demand for bonds. The Institute for Supply Management-Chicago's index on upper Midwest business activity fell to 56.2 in April, its lowest reading since November 2009.

"Expectations have faded for another round of US easing, though poor data keeps hope alive. Still, it's a hard market in which to sell, with so many uncertainties, and also because no one wants to be caught short over a holiday," said a fixed-income fund manager at a Japanese trust bank.

Chinese economic data released on Tuesday offered mixed signals for investors' risk appetite.

China's official purchasing managers' index (PMI) rose to 53.3 in April, its highest in more than a year and indicating a further expansion in that country's factory sector, but the reading fell short of market expectations of 53.6.

The yield on 10-year Treasuries stood at 1.92 percent, compared with 1.91 percent in late US trade.

The 30-year bond yield was at 3.12 percent, compared with 3.11 percent in late US trading.

Also adding to the appeal of fixed-income assets, data on Monday showed Spain officially sank into recession in the first quarter, clearly showing the impact of austerity measures aimed at alleviating its debt crisis.