CIT rumors weigh on bonds along with strong data

NEW YORK (Reuters) - U.S. Treasuries fell on Friday, with traders and analysts saying bond prices were weighed down by speculation of a buyer for struggling lender CIT Group Inc, along with strong housing data reported earlier.

"There's more rumors about CIT, somebody coming in and buying them or something," said Carl Lantz, U.S. interest rate strategist at Credit Suisse in New York.

CIT could not be immediately reached for comment.

Such a deal would help riskier assets like stocks at the expense of safe-haven government debt, Lantz added.

"You'll have a flight away from quality -- stocks will go up and Treasuries will go down," Lantz said. "Obviously if there is any government money involved that will be bearish (for bonds) but it sounds like the talk is more like somebody might buy them."

(Reporting by Burton Frierson; Editing by Chizu Nomiyama)