TREASURIES-Stock gains, corporate supply lift U.S. bond yields

* Upbeat bank earnings pare safe-haven bids for U.S. bonds

* UK PM May wins confidence vote, Brexit remains unclear

* Growing U.S. corporate bond supply spurs Treasury sales

* Fed's Beige Book shows tight jobs market, risks rising

(New throughout, updates prices, market activity and comments) NEW YORK, Jan 16 (Reuters) - U.S. Treasury yields rose on Wednesday as stronger-than-forecast results from two major U.S. banks lifted Wall Street to one-month highs and British Prime Minister Theresa May's win of a confidence vote, reducing safety bids for U.S. government debt. Rising supply of corporate bonds also lifted Treasury yields, as dealers sold Treasuries to lock in interest rates on the debt they underwrote. The $15.6 trillion sector has been trading in a choppy fashion since late 2018 due to stock market volatility and investor bets that the Federal Reserve might pause in raising short-term U.S. interest rates. "The bond market is being held hostage by stock market moves and Fed speak," said Mary Anne Hurley, vice president of fixed income at D.A. Davidson in Seattle. U.S.-China trade tensions, the long federal government shutdown and uncertainty over Brexit have also weighed on investor sentiment. Wall Street's major indexes hit one-month highs as Goldman Sachs and Bank of America posted strong results. The yield on benchmark 10-year Treasury notes was up 1.7 basis points at 2.725 percent. It has risen from a near one-year low of 2.543 percent reached a week and a half earlier. U.K. Prime Minister Theresa May clung to leadership after a crushing defeat of her Brexit deal. Now she can work on another proposal for Britain to leave the European Union by late March, but it remains unclear whether she can reach a deal with Brussels that other British lawmakers would accept. Two-year U.S. Treasury yields, which are sensitive to views on Fed policies, were 1.8 basis points higher at 2.547 percent. Nearly two weeks ago, they touched 2.372 percent, which was the lowest level since May 30. Fed officials including Chairman Jerome Powell have signaled in recent days that the U.S. central bank is willing to be patient before raising interest rates again. The Fed's latest Beige Book, a snapshot of regional economic conditions, showed labor markets tightened in early January, but businesses grew more worried about market volatility, trade tension and rising interest rates. On the supply front, companies raised about $6 billion with investment-grade bond issues on Wednesday, bringing the month-to-date issuance over $60 billion, according to IFR.

Wednesday, Jan. 16 at 1541 EST (2041 GMT): Price

US T BONDS MAR9 145-10/32 -3/32 10YR TNotes MAR9 121-188/256 -6/32 Price Current Net Yield Change (pct) (bps) Three-month bills 2.37 2.4174 -0.034 Six-month bills 2.43 2.4944 -0.026 Two-year note 99-233/256 2.5471 0.018 Three-year note 99-234/256 2.5299 0.019 Five-year note 100-98/256 2.5421 0.018 Seven-year note 100-8/256 2.6199 0.020 10-year note 103-108/256 2.7254 0.017 30-year bond 105-236/256 3.0703 0.001 YIELD CURVE Last (bps) Net

Change (bps)

10-year vs 2-year yield 17.50 0.15 30-year vs 5-year yield 52.80 -1.40

DOLLAR SWAP SPREADS

Last (bps) Net

Change (bps)

U.S. 2-year dollar swap 16.00 -0.50

spread

U.S. 3-year dollar swap 12.25 0.00

spread

U.S. 5-year dollar swap 9.00 0.00

spread

U.S. 10-year dollar swap 3.00 0.50

spread

U.S. 30-year dollar swap -20.25 0.75

spread

(Reporting by Richard Leong Editing by Frances Kerry and David Gregorio)