HONG KONG, Dec 18 (Reuters) - Rates in most Asian markets eased on Friday tracking gains in U.S. Treasuries and the strength in the dollar but Indian markets were spooked by fears the central bank may tighten monetary policy to tackle inflation.
* In Singapore, 3-month dollars edged lower to a record low of 0.25900 percent from 0.25971 percent, U.S. bill and dollar LIBOR rates fell to lifetime lows overnight.
* New Zealand one year swap rates fell 3 bps to 3.55 percent while longer tenor swaps eased 3-5 bps.
* In South Korea the swaps curve steepened with the front end easing by 4-6 bps and the front-end treasury bond futures contract jumped as much as 30 ticks before scaling back gains to end 19 ticks higher at 109.40.
* "Its a dollar strength story, and looking at the rates decline in the U.S. they dropped off here. But volumes are very thin," said a Singapore-based trader.
* But Indian rates rose amid caution about inflation ahead of the central bank governor's meeting with the finance minister which stoked speculation the Reserve Bank of India would tighten monetary policy to help stem rising prices.
* One year overnight indexed swaps in India rose 5 bps to 5.09 percent and bond yields also rose ahead of the meeting.
* Reserve Bank of India Governor Duvvuri Subbarao's meeting with Finance Minister Pranab Mukherjee is due to start at 4:15 p.m. and analysts say the meeting could be a prelude to an earlier-than-expected interest rate rise. (Reporting by Umesh Desai; Editing by Jan Dahinten)