* Majors broadly steady, though dollar holds gains vs euro
* Market focused on any change in Fed's Treasury buying
* Eyes on Treasury yield move on $104 bln auctions next week
By Kaori Kaneko
TOKYO, June 19 (Reuters) - The dollar held its gains against the euro on Friday and edged higher against the yen after U.S. yields rose following relatively positive data that encouraged hopes for the economy.
The dollar rose on Thursday, helped as well by chart-based trading and news of a change in the definition of the London interbank offered rate which raised speculation that yields on U.S. investments would move higher.
The move petered out in Asian trade, however, with the market awaiting next week's Federal Reserve policy-setting meeting for clear direction, and analysts said more details were needed about the Libor move to make clear the impact, if any, on the currency market.
U.S. data on Thursday showed the number of people on jobless benefits fell for the first time since January, while manufacturing in the U.S. Mid-Atlantic region contracted much less than expected in June.
Given generally benign economic data, U.S. government bonds fell, with the benchmark Treasury yield rising as well on worries about the market's ability to handle $104 billion in debt to be offered in next week's auctions.
"With persisting concerns about supply worries in the U.S., investors are focusing on whether the Fed will increase its Treasury buying," said Tomohiro Nishida, a manager at Chuo Mitsui Trust and Banking.
"A sharp rise in (longer-term) yields in the U.S. on supply concerns amid a huge amount of deficit could weaken the dollar," Nishida said, but added that a rise in shorter-end yields on the back of positive data could help the dollar.
The euro was steady at $1.3910, after rising as high as $1.4002 on trading platform EBS on Thursday. Failure to clear $1.40 led traders to sell it, lifting the dollar.
The currency market has been struggling for direction this week as investors try to decide whether a three-month long rally in riskier asset markets such as shares and higher-yielding currencies has got ahead of itself while the global economy is still struggling through recession.
The dollar edged up 0.1 percent to 96.65 yen.
The Swiss National Bank held interest rates at a record low on Thursday and SNB governor Jean-Pierre Roth said he would continue to stop an irrational rise in the Swiss franc.
The euro was steady against the Swiss franc at 1.5100 francs after rising as high as 1.5149 francs on EBS on Thursday. (Editing by Michael Watson)