LONDON, July 2 (Reuters) - U.S. bond prices were stable on Monday as worries over global growth spurred by weak Asian data tempered the flight from safe-haven assets that followed last week’s surprise agreement to give euro zone rescue funds more flexibility .
* Purchasing managers surveys out of China, Japan, South Korea and Taiwan showed demand from importing centres such as Europe and the United States slowed in June.
* That took the shine off an agreement by European leaders to let their rescue fund to inject aid directly into stricken banks from next year and intervene in bond markets to support troubled members.
* Having had the weekend to digest the new measures, some investors are now questioning whether the rescue fund will have enough firepower to cool down any selling pressure in the large Italian and Spanish debt markets. Worries are also growing over what is a long implementation process.
* “Markets have become a bit more critical over the weekend,” one trader said.
* U.S. 10-year government bond yields were 1 basis point higher at 1.6534 percent, while T-note futures were flat at 133-12/32.
* Yields retreated from session highs after slightly better-than-expected manufacturing figures from the euro zone and the UK. Similar data out of the United States will be released later on Monday. For stories, see and
* “The gut feeling is that the bear move in core bonds may have some legs ... but stretching beyond the immediate future the balance of risks may be skewed toward 10-year U.S. Treasury yields trying to test the 1.50 percent level,” Lloyds strategists said in a note.