By Emelia Sithole-Matarise Jan 10 (Reuters) - German Bunds slipped on Tuesday as European equities snapped a near one-week losing streak, cooling safety bids but further falls were seen capped by concerns over Greece's intractable debt problems. Reports that Greece planned to retroactively introduce collective action clauses on some existing debt as it seeks a deal with private bondholders to avert a potential default kept investors on edge, traders and strategists said, supporting underlying sentiment for Bunds. Investors were also nervous before debt auctions later in the week from Spain and Italy, which will test appetite for the bonds of the two countries at the forefront of the debt crisis. Greece's debt problems were again in focus after Germany and France warned on Monday it will get no more bailout funds until it agrees with creditor banks a bond swap and for an early deal to avert a potential default. "The reports on the Greek CACs is not helpful for sentiment. Bunds are vulnerable at these levels and we look for a short bias but we don't look for a pronounced sell-off today," Commerzbank strategist Marcel Bross said. German Bund futures were last 44 ticks down on the day at 138.66, with cash 10-year yields 3 basis points higher at 1.87 percent. Bunds were also in retreat as dealers made way for an auction of triple-A-rated 3-year Dutch bonds which raised 3.11 billion euros despite an ultra-low coupon of 0.75 percent. ITALY, SPAIN KEY TEST Austria's sale later on Tuesday of up to 1.3 billion euros of 10- and five-year bonds ws attracting more than usual interest as it will show how worried investors are about the country's exposure to neighbouring Hungary, which is in a dispute with the IMF over international aid. Austrian 10-year government bond yields 4 four bps down on the day at 3.41 percent, with traders saying the relatively small size of the offering and the price falls last week were likely to help the auction. The yields rose to their highest in over a month last week on concerns over potential fallout for its banking sector from lending to Hungary. "There was fairly decent concession in Austrian bonds and obviously the Hungarian situation hasn't helped the Austrian market but it seems to have gone a bit quiet for now," a trader said. "(The auction) should be OK as 1.3 billion euros is not too big. In terms of supply we are more interested in Spanish and Italian sales later in the week as we get the details of Italian supply tonight." Italian and Spanish 10-year government bond yield spreads over German benchmarks were slightly tighter on the day at 530 bps and 373 bps respectively, helped by the greater appetite for riskier assets such as equities. But trade was expected to be volatile before the two countries' first auctions of the year on Thursday and Friday. Both face hefty refinancing tasks is 2012 and the auctions will be seen as tests of their ability to fund themselves at sustainable levels.

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