TREASURIES-U.S. bond prices higher, Fed emphasizes 'solid' growth

* Fed releases report in advance of congressional testimony

* Treasuries continue narrow trading range

* Bid for European government bonds helps support U.S. debt

(Updates trading, adds Fed, analyst quotes) NEW YORK, July 13 (Reuters) - Treasury prices moved higher on Friday after the Federal Reserve reinforced views of strong U.S. economic growth in a report to Congress. The Fed reiterated that it "expects that further gradual increases" in interest rates would be appropriate given "solid" growth. Fed Chairman Jerome Powell will answer questions on the report before lawmakers on Tuesday and Wednesday. Rising bond prices in Europe helped to support demand for Treasuries in early trading, analysts said. The safe-haven bid appeared to be spurred by U.S. President Trump's criticism of UK Prime Minister Theresa May's Brexit strategy, saying it killed hopes of a U.S. trade deal. The yield curve on U.S. Treasuries once again reached its flattest level in 11 years. The spread between 2-year and 10-year Treasury notes fell to 24.46 basis points. The relatively weak reception for the 3-year Treasury note offering on Tuesday compared with stronger demand for longer-dated debt auctions later in the week showed that "investors were definitely in the long end of the curve," said Justin Lederer, Treasury analyst at Cantor Fitzgerald in New York. "The yield curve has continued to flatten just relentlessly for the last two weeks even while the long end was locked in a really tight range," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott LLC in Philadelphia. U.S. benchmark 10-year notes have traded narrowly between 2.807 percent and 2.884 percent during the past two weeks. The yield on U.S. 10-year notes was 2 basis points lower on the day at 2.833 percent. The Fed's Bank of Atlanta President Raphael Bostic was scheduled to speak on Friday at 12:30 p.m. (1630 GMT) before the Northern Chapter Virginia Society of Certified Public Accountants.

July 13 Friday 1:20PM New York / 1720 GMT Price

US T BONDS SEP8 145-21/32 12/32 10YR TNotes SEP8 120-88/256 6/32 Price Current Net Yield % Change


Three-month bills 1.9375 1.9737 0.000 Six-month bills 2.1125 2.1644 -0.001 Two-year note 99-214/256 2.5862 -0.008 Three-year note 99-230/256 2.6605 -0.024 Five-year note 99-132/256 2.73 -0.025 Seven-year note 99-176/256 2.7996 -0.022 10-year note 100-92/256 2.8326 -0.020 30-year bond 103-180/256 2.9376 -0.012 YIELD CURVE Last (bps) Net

Change (bps)

10-year vs 2-year yield 24.50 -1.10 30-year vs 5-year yield 20.70 1.00


Last (bps) Net

Change (bps)

U.S. 2-year dollar swap 22.25 -1.00


U.S. 3-year dollar swap 19.50 0.00


U.S. 5-year dollar swap 14.00 0.25


U.S. 10-year dollar swap 6.50 -0.25


U.S. 30-year dollar swap -4.00 -0.50


(Reporting by James Thorne; editing by Jonathan Oatis and Dan Grebler)