TREASURIES-Bonds fall after surprisingly high core inflation

NEW YORK, Aug 4 (Reuters) - U.S. Treasury debt prices extended losses on Monday after a gauge of core inflation which the Federal Reserve watches closely rose more than expected.

The core PCE price index rose 0.3 percent in June, above economists' consensus forecast for a 0.2 percent rise.

The benchmark 10-year Treasury note US10YT=RR's price, which moves inversely to its yield, fell 7/32 for a yield of 3.97 percent, versus 3.95 percent before the data and versus 3.94 percent late Friday. (Reporting by John Parry; Editing by Theodore d'Afflisio)