Emerging debt-Asia bonds broadly weaker ahead of Fed

HONG KONG, June 24 (Reuters) - Asian bond spreads mostly widened on Tuesday as nervousness set in ahead of a slew of data and U.S. Federal Reserve comments that could offer insight into the future of U.S. interest rate policy.

The Fed starts a two-day meeting on Tuesday at which it is widely expected to leave interest rates steady at 2 percent, but markets will pay more attention to post-meeting statements as oil prices hover around record levels threatening further inflationary pressures globally. [ID:n22322884]

The iTRAXX Asia ex-Japan high-yield index <ITAHY5UA=GFI>, a key measure of risk aversion, moved out to 525/535 basis points (bps) from the previous close of 517/525 bps.

"There is worry about oil spiking to $150 if Israel takes out Iran's nuclear facilities, about inflation numbers that are coming out and about the Fed hinting at higher rates ... there's plenty to worry about," said a Singapore-based trader.

Oil rose for a third straight session to around $137 a barrel on Tuesday amid fears of Nigerian supply disruptions and tensions between Israel and Iran. It hit a record high of $139.89 last week.

Nigeria's senior oil workers union began a limited strike at Chevron on Monday and this has added to concerns about supplies from the OPEC nation after militant attacks shut 340,000 barrels of daily production last week. [ID:nL23390511]

Iran's nuclear programme is also a source of worry because any conflict has the potential to shut the Straits of Hormuz, a narrow waterway separating Iran from the Arabian Peninsula through which roughly 40 percent of the world's traded oil flows.

And although comments from the Fed remained uppermost on analysts' minds, some are wary that financial markets will call the central bank's bluff if it merely sends out verbal signals.

"The longer the Fed talks and does not act, the greater the chance the market will get the joke and reduce rate hike expectations," said Standard Chartered Bank in a client note.