* Planned US business spending flat in September
* Stronger than expected UK growth supports risk-on trade
* Treasury sells $29 billion in seven-year notes
NEW YORK, Oct 25 (Reuters) - U.S. Treasuries prices slid for a second session on Thursday after a debt sale suggested waning demand for safe-haven assets as hopes build for a pick-up in the global economy. The U.S. Treasury sold $29 billion in seven-year notes at a high yield of 1.267 percent. That followed sales of $35 billion each in two- and five-year notes earlier in the week.
``Today's auction was pretty lackluster,'' said Kim Rupert, managing director of global fixed income analysis at Action Economics in San Francisco. At 2.56, Thursday's bid-to-cover ratio was the lowest in more than three years, she noted. ``A kind of bearish uncertainty has developed,'' Rupert added. ``There's some hope - mostly hope - that (global) growth is going to be picking up in the near term.'' Bolstering those hopes, data on Thursday showed that spending on the summer Olympics fueled Britain's strongest quarterly growth in five years, springboarding the country out of recession in the third quarter. But with looming uncertainties in the euro zone and elsewhere, Rupert said, Treasuries could rally again. On Thursday, investors saw some of that uncertainty rear its head as U.S. business investment showed signs of stalling in September. New orders for capital goods outside of defense and excluding aircraft - a proxy for business spending plans - were unchanged last month at $60.3 billion, Commerce Department data showed. Analysts polled by Reuters had expected a modest gain. Treasuries also fell on Wednesday, when the Fed, as expected, held off taking any further monetary policy easing steps after it launched a new round of bond purchases last month. ``The heavy market tone started post-Federal Open Market Committee yesterday and would continue throughout the overnight session, with the selling escalating after the much stronger UK GDP report,'' said Justin Lederer, interest rate strategist at Cantor Fitzgerald in New York. Benchmark 10-year notes were trading 10/32 lower in price to yield 1.828 percent, up from 1.79 percent late Wednesday. Benchmark yields reached as high as 1.86 percent in the overnight session, marking the loftiest since Sept. 17. Yields have generally been trading in a range of 1.55 percent to 1.87 percent since early August, noted Michael Cloherty, head of U.S. rates strategy at RBC Capital Markets in New York. He added that pending October jobs data and the U.S. presidential election in early November could push yields out of that band. ``The potential sell-off due to the election seems much larger than the potential rally. Accordingly, we expect to see pressure on the market before the election that could take 10-year yields out of their recent range,'' Cloherty said. The government will release October non-farm payrolls data on Nov. 2, and the U.S. elections are on Nov. 6.
(Editing by Kenneth Barry,Dan Grebler and Diane Craft)