TREASURIES-Bonds sell off after sentiment, homes data

NEW YORK, July 25 (Reuters) - U.S. Treasury debt prices steepened losses on Friday after a much stronger-than-expected consumer sentiment reading and a firmer than forecast new home sales report.

The benchmark 10-year Treasury note <US10YT=RR>'s price, which moves inversely to its yield, traded down 18/32 for a yield of 4.07 percent, versus 4.04 percent before the reports and versus 4.00 percent late Thursday.

U.S. short term interest rate futures signaled the implied chance of a Federal Reserve rate hike in September had increased after the firmer than expected data. (Reporting by John Parry; Editing by Theodore d'Afflisio)