(Adds quote, spending bill, data; updates prices)
* Trump signs into law massive spending bill
* Capital goods orders rebounded in February
* U.S. new home sales fell in February
NEW YORK, March 23 (Reuters) - U.S. Treasury yields rose from six-week lows on Friday in choppy trading as concerns about a global trade war after President Donald Trump announced tariffs on Chinese goods kept investors on edge. China urged the United States on Friday to "pull back from the brink" after Trump said he planned tariffs on up to $60 billion in Chinese goods, and the Chinese commerce ministry warned that the country "doesn't hope to be in a trade war, but is not afraid of engaging in one." Stocks markets fell globally as investors feared the impact of tariffs on global growth. Treasuries benefited from safety buying overnight, before weakening slightly on Friday as investors evaluated future moves. We keep going back and forth ... whether were going to have a trade war or not have a trade war, said Mary Ann Hurley, vice president in fixed income trading at D.A. Davidson in Seattle. Bloomberg News cited Chinas ambassador to the United States saying that the country is looking at all options in response to tariffs, which could include scaling back purchases of Treasuries.
Benchmark 10-year notes fell 3/32 in price to
yield 2.843 percent, after falling to a six-week low of 2.792 percent overnight. Trump on Friday signed into law Congress' massive $1.3 trillion spending bill, which is expected to worsen the deficit and increase the governments need to issue more debt.
Data on Friday showed that new orders for key U.S.-made capital goods rebounded more than expected in February after two straight monthly declines and shipments surged, pointing to strong growth in business spending on equipment in the first quarter. But sales of new U.S. single-family homes unexpectedly fell for a third straight month in February, weighed down by steep declines in the Midwest and West.
(Reporting by Karen Brettell Editing by Leslie Adler)