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TREASURIES-Yields rise on upbeat U.S. data, Fed chair talk

* Strong U.S. durables, housing data help boost yields

* U.S. 5-year auction sees soft demand

(Adds auction results, new analyst comment, updates prices, table) NEW YORK, Oct 25 (Reuters) - U.S. Treasury yields climbed on Wednesday, boosted by strong U.S. durable goods and new home sales data as well as speculation about President Donald Trump's nominee to head the Federal Reserve. Benchmark U.S. 10-year note yields hit seven-month highs, while yields on 30-year bonds climbed to five-month peaks. U.S. two-year note yields also advanced, hitting a nine-year high. Yields extended gains after data showing new orders for key U.S.-made non-defense capital goods rose 1.3 percent last month. Other data on Wednesday showed new single-family home sales surging nearly 19 percent to a near 10-year high last month.

Bill Northey, chief investment officer at U.S. Bank Wealth Management in Helena, Montana said the rise in yields has been supported by "a strong package of U.S. economic data." Talk about Trump's potential nominee to lead the Fed has also stirred the market. Current Fed Chair Janet Yellen, Stanford University economist John Taylor, and Fed Governor Jerome Powell were viewed as front-runners for the job. Taylor recently has gotten a lot of attention and his emergence as a strong candidate was deemed a push for higher interest rates, analysts said. Also on Wednesday, Treasury's auction of $34 billion in 5-year notes resulted in tepid demand. The yield was 2.058 percent, which was higher than expected at the bid deadline and was also the highest since April 2011. There were nearly $83.1 billion in bids for a bid-to-cover ratio of just 2.44, the lowest since June. The soft five-year note auction followed a similarly lukewarm two-year note sale on Tuesday. "The sell-off across the curve over the last month has been something we have not seen for a long time," said Tom Simons, money market economist at Jefferies & Co in New York. "So it's tough to step in there and support new issuance when the market is already soft." On Thursday, Treasury will sell $28 billion in 7-year notes. In afternoon trading, 10-year U.S. Treasury note yields rose to 2.440 percent, up from Tuesday's 2.406 percent. Earlier, 10-year yields rose to 2.475 percent, the highest since March 21. U.S. 30-year bond yields were up at 2.951 percent , from 2.923 percent late Tuesday. Thirty-year yields earlier climbed to a five-month high of 2.980 percent. U.S. two-year note yields, meanwhile, were at 1.602 percent , up from 1.577 percent the previous session. Two-year yields earlier hit a fresh nine-year peak of 1.623 percent.

October 25 Wednesday 3:07PM New York / 1907 GMT Price

US T BONDS DEC7 151 -0-22/32 10YR TNotes DEC7 124-124/256 -0-64/25

6

Price Current Net Yield % Change

(bps)

Three-month bills 1.0925 1.1107 -0.015 Six-month bills 1.2475 1.2729 0.000 Two-year note 99-202/256 1.6068 0.030 Three-year note 99-176/256 1.7333 0.019 Five-year note 99-42/256 2.0541 0.027 Seven-year note 99-8/256 2.2768 0.032 10-year note 98-92/256 2.439 0.033 30-year bond 96-12/256 2.9502 0.027

DOLLAR SWAP SPREADS

Last (bps) Net

Change (bps)

U.S. 2-year dollar swap 22.25 -1.75

spread

U.S. 3-year dollar swap 22.50 0.25

spread

U.S. 5-year dollar swap 7.50 0.25

spread

U.S. 10-year dollar swap -2.50 -0.25

spread

U.S. 30-year dollar swap -29.25 0.00

spread

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Andrea Ricci)