September 27, 2019 / 2:35 PM / 2 months ago

TREASURIES-Bonds pare price losses as data disappoints

    * Consumer spending barely rises, durable goods orders fall
    * Investors focused on impeachment probe, trade talks

    By Karen Brettell
    NEW YORK, Sept 27 (Reuters) - U.S. Treasury prices gave back
most of their early losses on Friday after U.S. data was weaker
than expected and as month- and quarter-end rebalancing
increased demand for safe-haven U.S. debt.
    U.S. consumer spending barely rose in August and business
investment remained weak, suggesting the economy was losing
momentum as trade tensions linger.             
    Consumer spending, which accounts for more than two-thirds
of U.S. economic activity, edged up 0.1% last month as an
increase in outlays on recreational goods and motor vehicles was
offset by a decrease in spending at restaurants and hotels.
    In another report on Friday, the Commerce Department said
orders for non-defense capital goods excluding aircraft, a
closely watched proxy for business spending plans, dropped 0.2%
last month amid weak demand for electrical equipment, appliances
and components, and computers and electronic products.
    “Some of the data was a little bit disappointing, for
example, the consumer spending numbers and the durable orders
numbers. Overall the data was OK, but a little bit lackluster
and I think that’s weighing on the tone a little bit,” said
Gennadiy Goldberg, an interest rate strategist at TD Securities
in New York.
    Benchmark 10-year notes             were last down 3/32 in
price to yield 1.694%, after earlier rising to 1.725%.
    Investors are also focused on the impeachment probe of U.S.
President Donald Trump and the latest headlines from the trade
dispute between the United States and China.
    A whistleblower report released on Thursday said Trump not
only abused his office in attempting to solicit Ukraine's
interference in the 2020 U.S. election, but that the White House
tried to "lock down" evidence about it.             
    China's top diplomat said on Thursday that China was willing
to buy more U.S. products and that trade talks would yield
    Those comments fueled the positive mood after Trump on
Wednesday praised the Chinese purchases, saying a trade deal
could come sooner than people thought.
    Washington and China are preparing for another round of
trade talks scheduled for Oct. 10 and 11.

 (Reporting by Karen Brettell; Editing by Dan Grebler)
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