* Spain worries enhance safety bid * Euro zone worry outweighs impact of strong U.S. retail sales By Ellen Freilich NEW YORK, April 16 (Reuters) - U.S. Treasuries rose on Monday despite a stronger-than-forecast retail sales report as worries about the euro zone fed demand for safe-haven U.S. government debt. Yields on the benchmark 10-year note remained below the psychologically important level of 2 percent as concerns about the euro zone, with Spain's finances in focus, sent the yield down to 1.95 percent with prices up 10/32 on the day. Stocks were mixed, adding to investors' willingness to invest in safe-haven U.S. Treasuries. Market participants have become more concerned about a summer slowdown similar to what the economy experienced in each of the last two years, said Joseph LaVorgna, managing director and chief U.S. economist at Deutsche Bank Securities. However, Monday's retail sales data had little impact on bond market participants' perceptions of Federal Reserve policy. Fed officials have suggested the economy would have to deteriorate for the central bank to consider additional stimulus.. The Fed's policy setting Federal Open market Committee meets in April, but economists who predict extra monetary stimulus say any move is unlikely before June. March U.S. retail sales data did not support a case for deteriorating growth. They rose 0.8 percent, more than expected in March, as Americans took high gasoline prices in stride and bought a range of goods, suggesting the economy's growth in the first quarter did not slow as much as many had feared. But analysts said the market was focused on the euro zone. Spanish 10-year yields rose above 6 percent on Monday as concerns over the country's finances risked sparking another flare-up in the euro zone debt crisis. The yield reached 6 percent last week for the first time in four months. Appetite for the country's debt will be tested on Thursday when Spain issues bonds in the primary market. Market confidence in Spain has been dented following a 2.5 percentage point of GDP revision to the 2011 fiscal deficit and a delayed publication of the 2012 budget. Solvency concerns about Spain are based on the grounds of fiscal consolidation, incomplete bank recapitalisation and consolidation, and the need for tighter regional spending. But spending cuts would come at a time when Spain has an overall unemployment rate of 23.6 percent and a youth unemployment rate over 50 percent. Unless robust U.S. economic data presents a challenge, 10-year U.S. Treasury yields could remain near or below 2 percent on euro zone concerns. Those concerns argue for an extended period of monetary ease and further steps along that course, a bullish path for bonds. Two-year U.S. government bond yields were unchanged at 0.27 percent, while the thirty-year bond rose 18/32, its yield easing to 3.10 percent.