(New throughout, updates prices, market activity, comments and Fed view) By Ross Kerber BOSTON, Dec 18 (Reuters) - U.S. Treasury yields rose on Wednesday as investors shrugged off the likely impeachment of U.S. President Donald Trump and focused on positive economic signs. The benchmark 10-year yield was up 3.1 basis points to 1.9204% in afternoon trading. It has risen steadily over the course of the month from a low of 1.6930% on Dec 3, a trend analysts said pointed to a relatively stable economic outlook. "The global trend has been things getting less bad," said Evan Brown, head of multi-asset stretegy for UBS Asset Management. "It's a general appreciation by markets that the global economy is healing and the flight to safety we saw earlier this year is dissipating," he said. The U.S. House of Representatives on Wednesday was likely to impeach Trump on charges of abusing his office and obstructing a congressional probe. In theory, the step could shake confidence in Treasuries. But the political action appears already priced in with the U.S. Senate unlikely to convict Trump, said Andrew Brenner, head of international fixed income at NatAlliance Securities. Various bits of positive economic news in recent days have raised investor confidence and led to bond sell-offs, Brenner said. He cited a survey showing German business morale rising in December to a six-month high, and a Commerce Department report on Tuesday showing surprisingly strong U.S. homebuilding activity in November. "There are green shoots" in the economy, he said. Priya Misra, head of global rates strategy for TD Securities, said another factor diminishing the economic influence of impeachment is that Congress and the White House have made progress on areas like a budget deal and trade agreements with China and Mexico. "Perhaps impeachment has made it more likely that policy is not at gridlock," she said. Euro zone bond yields steadied in quiet trading after falling on renewed anxiety about Brexit. Britain on Tuesday set a hard deadline of December 2020 to reach a trade deal with the European Union. On Wednesday, New York Fed President John Williams expressed an optimistic outlook in an interview with CNBC. "I feel very good about how the economy's been this year, how it's progressed and feel very good about how it's going to look next year," Williams said. The two-year yield, which typically moves in step with interest rate expectations, was unchanged at 1.6328%. December 18 Wednesday 2:51PM New York / 1951 GMT Price Current Net Yield % Change (bps) Three-month bills 1.5275 1.559 -0.013 Six-month bills 1.5375 1.5754 -0.003 Two-year note 99-191/256 1.6328 0.000 Three-year note 99-224/256 1.668 0.011 Five-year note 98-228/256 1.7349 0.024 Seven-year note 98-132/256 1.8536 0.031 10-year note 98-120/256 1.9204 0.031 30-year bond 100-156/256 2.3465 0.030 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 6.75 1.25 spread U.S. 3-year dollar swap 2.00 0.25 spread U.S. 5-year dollar swap -1.25 -0.25 spread U.S. 10-year dollar swap -5.25 0.00 spread U.S. 30-year dollar swap -30.00 0.00 spread (Editing by Nick Zieminski, Richard Chang and David Gregorio)
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