TREASURIES-Yields reach 5-week high amid profit taking after Fed

* Planned US business spending flat in September

* Bonds extend loss after UK growth exceeds forecasts

* Benchmark yields break above 200-day moving average

NEW YORK, Oct 25 (Reuters) - U.S. benchmark yields touched a five-week high on Thursday ahead of the sale of seven-year notes, and after the Federal Reserve stuck to its monetary policy on Wednesday, prompting some Treasury investors to book profits. Price losses were pared on Thursday morning, however, following data showing planned U.S. business spending was flat in September, although new orders for long-lasting manufactured goods increased. Data also showed new claims for jobless benefits fell last week, although economists said the economy remains hobbled by persistently high unemployment. Treasuries began the day lower, extending Wednesday's price weakness, in the wake of data showing third-quarter growth in the United Kingdom beat forecasts. On Wednesday the Fed, as expected, held off taking any further monetary policy-easing steps after it launched a new round of bond purchases last month. ``The heavy market tone started post-Federal Open Market Committee yesterday and would continue throughout the overnight session with the selling escalating after the much stronger U.K. GDP report,'' said Justin Lederer, interest rate strategist at Cantor Fitzgerald in New York. Investors took the opportunity on Thursday to push Treasury prices lower to make way on their books for a $29 billion seven-year note sale later in the day. The auction follows sales of $35 billion of two-year notes on Tuesday and $35 billion of five-year notes on Wednesday. Ahead of Thursday's sale, seven-year notes on the when-issued market were trading with a yield near 1.29 percent, compared with seven-year yields on the open market near 1.27 percent. Benchmark 10-year notes were trading 16/32 lower in price to yield 1.85 percent, up from 1.79 percent late Wednesday and breaking above the 200-day moving average near 1.81 percent. Benchmark yields reached as high as 1.86 percent, the loftiest since Sept. 17. Thirty-year bonds were trading 27/32 lower in price to yield 3.00 percent, up from 2.95 percent late Wednesday.