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TREASURIES-U.S. yields fall on Fed minutes, Trump ending CEO panels

* Trump dismantling of CEO panels raises worries about his agenda

* Fed minutes show policy-makers' growing unease on low inflation

* U.S. yields rise earlier on solid European growth data

* ECB's Draghi mum on new policy message at Jackson Hole - Reuters

(Updates throughout, adds quote) NEW YORK, Aug 16 (Reuters) - U.S. Treasury yields fell on Wednesday, with benchmark yields retreating from one-week highs as U.S. President Donald Trump's dissolving of two business advisory groups and the Federal Reserve's record of its July policy meeting raised economic worries. Trump's move came as several chief executives in those groups quit following his response to the weekend of violence in Virginia, which some perceived as supportive of white supremacists. The dismantling of the panels shook investor confidence in Trump's ability to enact the promises he made during his presidential campaign, in particular tax reform.

"It will be tough for his agenda to pass. Those worries grow with the disbanding of the council and forum," Chris Gaffney, President of EverBank World Markets in St. Louis, Missouri, said of Trump's Manufacturing Council and Strategy and Policy Forum. Meanwhile, Fed policy-makers seemed more wary about the softening in inflation, with some calling to stop further rate increases until it is clear the trend was transitory, according to Fed's minutes on its July 25-26 policy meeting. Interest rates futures implied traders saw a 45 percent chance the Fed would raise rates at its December meeting , down from 48 percent late Tuesday, CME Group's FedWatch tool showed. The benchmark 10-year Treasury note yield was 2.227 percent, down 4 basis points from late Tuesday, while the 30-year bond yield was 2.811 percent, nearly 3 basis point lower from Tuesday's close, Reuters data showed. Treasury yields reached one-week peaks earlier Wednesday in line with their European counterparts on stronger-than-forecast annual growth in the euro zone. They have risen this week as investors reduced safe-haven bond holdings due to easing tensions between the United States and North Korea.

Bond yields began receding following a Reuters report that European Central Bank President Mario Draghi will not deliver a new policy message at the Fed's Jackson Hole conference this month. Traders had speculated Draghi might float the notion the ECB would reduce its bond purchases later this year as the region's economy has improved. "I think this is mildly bullish (for bonds), but I'm not sure it changes much as far as guidance on tapering from Draghi," said Aaron Kohli, interest rates strategist at BMO Capital Markets in New York. U.S. yields retreated further after data showed domestic home construction unexpectedly fell 4.8 percent in July, raising doubts about the strength of the housing market in the third quarter. August 16 Wednesday 3:37PM New York / 1937 GMT Price

US T BONDS SEP7 154-31/32 0-18/32 10YR TNotes SEP7 126-128/256 0-88/256 Price Current Net Yield % Change

(bps)

Three-month bills 0.9975 1.0139 -0.020 Six-month bills 1.115 1.1369 -0.013 Two-year note 100-22/256 1.3302 -0.021 Three-year note 100-12/256 1.4839 -0.029 Five-year note 100-112/256 1.7823 -0.037 Seven-year note 100-140/256 2.0402 -0.044 10-year note 100-52/256 2.2272 -0.039 30-year bond 98-192/256 2.812 -0.028

DOLLAR SWAP SPREADS

Last (bps) Net

Change (bps)

U.S. 2-year dollar swap 25.75 0.50

spread

U.S. 3-year dollar swap 20.25 1.00

spread

U.S. 5-year dollar swap 7.25 0.50

spread

U.S. 10-year dollar swap -5.00 0.25

spread

U.S. 30-year dollar swap -33.75 0.00

spread

(Reporting by Richard Leong; Editing by Chizu Nomiyama and James Dalgleish)