They can breed in it but you will have a heck of a time rearing fry and the parents in a tank that small. In addition to that, the parents will grow. You might as well just get a bigger tank.
I've had them breed at the 1 1/4-1 1/2" range. Yes eventually you'll need a bigger and multiple tanks, but for now you are fine. Usually the first couple batches are partice runs anyhow.
I had a group of 1/4-1/2 inch convicts...After two days in their new tank, a pair was formed and I estimated around 20-30 eggs were laid and fertilized in a small dugout nest....These fish are not nick named "rabbit" for nothing...lol...As for a pair breeding in 10g tanks, mine do it...They will even spawn in those orange 5 gallon buckets sold at Home Depot...No joke...