TREASURIES-Bonds hold gains after ISM-Chicago ISM data

(Updates market action after ISM-Chicago)

NEW YORK, April 30 (Reuters) - U.S. Treasuries prices held at modestly higher levels on Friday even though a report showed U.S. Midwest business activity expanded faster than expected in April, signaling vigor in the economic recovery.

The Institute for Supply Management-Chicago said its index on Midwest business activity rose to 63.8 in April, higher than the 60.0 predicted by economists recently polled by Reuters. The index was 58.8 in March.

The price on benchmark 10-year Treasury notes US10YT=RR was up 1/32 at 99-5/32, the same level before the release of the ISM-Chicago report.

The 10-year yield which moves inversely to the price was last 3.73 percent, matching the level before the report. (Reporting by Richard Leong; Editing by James Dalgleish)