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TOKYO (Reuters) - Asian stocks slipped and the U.S. dollar advanced on Tuesday, as a deluge of U.S. government debt this week and the specter of inflation and a higher fiscal deficit drove U.S. borrowing costs near four-year highs.

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An employee of the Tokyo Stock Exchange (TSE) works at the bourse in Tokyo, Japan, February 6, 2018. REUTERS/Toru Hanai

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.25 percent. Japan's Nikkei .N225 rose 0.7 percent thanks to fall in the yen.

U.S. bond prices have fallen for the past four days, pushing up the 10-year yield to 2.998 percent US10YT=RR, its highest level since January 2014.

“There are concerns about inflation, rising oil prices and also U.S. fiscal conditions,” said Hiroko Iwaki, senior strategist at Mizuho Securities, noting the U.S. budget deficit is expected to hit $1 trillion next year.

The bond market is bracing for combined sales of $96 billion in coupon-bearing Treasuries this week as the Treasury has ramped up its borrowing following last year’s massive tax overhaul and a two-year budget agreement reached in February.

Inflation worries are also mounting as oil and commodity prices have been rising in recent weeks.

Market gauge of investors’ inflation expectations such as the 5-year forward inflation swap USIL5YF5Y=R and 10-year breakeven yield have hit their highest levels in many months.

Investors are concerned that U.S. inflation, long subdued since the financial crisis a decade ago, could gain momentum as President Donald Trump’s tax cuts this year could stimulate an economy already near or at full employment.

U.S. stocks were little changed on Monday as bond yield worries offset optimism on corporate earnings.

Analysts expect earnings growth at S&P 500 companies of nearly 20 percent in the

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