* U.S. durables better than expected, Treasury yields rise
* But Ukraine-Russia tensions lurk, may support Treasuries
* Seven-year auction later in session
By Gertrude Chavez-Dreyfuss
NEW YORK, April 24 U.S. Treasury yields rose on
Thursday, as stronger-than-expected durable goods data and
robust earnings from Apple suggested the U.S. economy was
finally on the mend following a harsh winter season.
Yields on U.S. 30-year bonds climbed after falling for two
straight days, while that of benchmark 10-year Treasuries
continued to test its 200-day moving average of 2.7271 percent.
Orders for long-lasting U.S. manufactured goods, or
durables, rose more than expected in March, while a separate
report showed U.S. continuing jobless claims were the lowest
since December 2007. Both economic numbers spurred a move away
from safe-haven Treasuries
"The durable goods number is just supporting the idea of a
decent bounce-back after a poor winter and that we are gradually
pulling ourselves out," said David Keeble, global head of
interest rate strategy at Credit Agricole in New York.
"We're now just waiting for the inflation and wage numbers
to pick up to undertake a bigger sell-off."
An unusually cold and snowy winter disrupted economic
activity at the end of 2013 and the beginning of this year,
holding back job growth and weighing on industrial production.
The benchmark 10-year U.S. Treasury note was
last down 8/32 in price to yield 2.71 percent, from 2.70 percent
late Wednesday. Prices on 30-year Treasury bonds were also 13/32
lower to yield 3.49 percent from 3.48 percent the previous
Treasury prices were already lower before the latest U.S.
economic data, thanks to results of Apple Inc. that
surpassed expectations. Apple reported sales of 43.7 million
iPhones in the quarter ended March, far outpacing forecasts.
That drove a 4.6 percent rise in revenue to $45.6 billion, a
record for any non-holiday quarter.
"The Apple results sent Nasdaq into the stratosphere,
putting Treasuries on a defensive stance," said Keeble.
Treasuries, however, could get back in favor given tensions
continued tensions between Russia and Ukraine.
Russia started military drills near the Ukrainian border
with on Thursday in response to operations by Ukrainian forces
against pro-Russian separatists and NATO exercises in eastern
Europe, Defense Minister Sergei Shoigu was quoted as saying by
the Interfax news agency.
Later in the session, the Treasury auctions $29 billion in
7-year notes to complete this week's sale.
(Editing by W Simon)