TREASURIES-Bonds rise on weak stocks, auctions' afterglow

* Bonds' appeal shown by successful auctions

* Weak stocks support Treasuries

* Data suggests inflation pressures subdued (Updates after data, adds quote)

By Burton Frierson

NEW YORK, June 26 (Reuters) - U.S. Treasuries rose on Friday, sending benchmark yields to their lowest in nearly four weeks as sagging stocks and signs of subdued inflation allowed bonds to bask in the glow of well-received debt auctions.

Data showed U.S. consumer spending rose last month for the first time since February as government stimulus measures pushed incomes sharply higher. But many individuals remained financially defensive, with the savings rate hitting its highest in nearly 16 years.

Since money saved is money not spent, the report suggested the Federal Reserve's super-easy monetary policy has yet to spur inflationary pressures, allowing investors to focus on this week's record bond auctions and a dip in stocks.

"The supply went very well ... some of the best auctions in a while. This means Treasuries are still hot," said Sergey Bondarchuk, U.S. interest rate strategist with BNP Paribas in New York.

"And you've got some support from equity markets today."

Benchmark 10-year Treasury notes US10YT=RR traded 10/32 higher in price for a yield of 3.51 percent versus 3.55 percent at Thursday's close.

During the early morning rally, yields fell as far as 3.50 percent, their lowest since the start of June. Based on the fall in 10-year yields, the bond market appeared to be on track for its biggest one-week rally since December.

The 30-year bond US30YT=RR rose 15/32 to yield 4.31 percent versus 4.34 percent on Thursday.

Two-year notes were up 1/32 in price, yielding 1.11 percent versus Thursday's 1.13 percent.

The government sold $104 billion in two-, five- and seven-year debt this week.

Now investors are set for a week's break from supply, which has hung over the market all year, with the government set to bring $2 trillion in new bonds to market as it finances a massive bailout of the world's largest economy.

Investors also have the prospect of the Fed buying Treasuries. The U.S. central bank is scheduled to make purchases on June 30 and July 1.

At its meeting in March, the Fed said it would buy up to $300 billion in longer-term Treasuries and is now about $181 billion, or about 60 percent, through that plan. (Reporting by Burton Frierson; Editing by Kenneth Barry)