Wires

TREASURIES-U.S. Treasury yields rise on growth, consumer spending reports

Ross Kerber

BOSTON, Dec 20 (Reuters) - U.S. Treasury yields rose on Friday on relatively strong economic growth and consumer spending reports. The benchmark 10-year yield was up 2.8 basis points to 1.9364% in morning trading, reflecting greater appetite for risk. Analysts pointed to a Commerce Department report showing gross domestic product increased at a 2.1% annualized rate in the third quarter, unrevised from the previous estimate. The economy grew at a 2.0% pace in the second quarter. The report suggested a continuation of economic growth and reinforced a sense of business momentum, said Stan Shipley, macro research analyst at Evercore ISI. "Stocks are up and oil is trending higher. People are shifting their allocations, which became very defensive several months ago on recession concerns. Now the odds of that are very low," Shipley said. The Commerce Department's unrevised reading was in line with economists' expectations, but consumer spending was stronger than previously reported. There were also upgrades to business spending on non-residential structures such as power infrastructure. The two-year yield, which typically moves in step with interest rate expectations, was up 1.9 basis points to 1.6397% in morning trading.

December 20 Friday 9:37AM New York / 1437 GMT Price

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(Reporting by Ross Kerber; Editing by Dan Grebler)