* Fed's Yellen cites strong U.S. growth as driving inflation * U.S. pending homes sales stronger than expected * Weakness in UK, Europe also weighs on Treasuries (Adds comment, updates prices, table) By Gertrude Chavez-Dreyfuss NEW YORK, Nov 29 (Reuters) - U.S. Treasury yields rose across most maturities on Wednesday bolstered by upbeat remarks on the economy by Federal Reserve Chair Janet Yellen and data showing stronger than expected U.S. economic growth for the third quarter.
U.S. 10-year note and 30-year bond yields, which move inversely to prices, climbed to two-week highs, while those on two-year notes advanced to a more than one-week peak after hitting a nine-year high last week.
Cheng Chen, interest rates strategist at TD Securities in New York, attributed the rise in yields to Yellen's hawkish comments.
"Yellen was kind of optimistic about the economy," said Chen. "She's basically saying that strong growth would drive inflation higher and I think that's one of the drivers for the market moves today." In what may be one of her last public appearances before leaving the Fed chair early next year, Yellen said on Wednesday a strengthening U.S. economy will warrant continued interest rate increases. She made the remarks before U.S. congressional leaders.
Data showing that U.S. gross domestic product expanded at a 3.3 percent annual rate in the third quarter further boosted yields. That was the quickest pace of U.S. growth in three years, as increases in business investment in inventories and equipment offset a moderation in consumer spending.
U.S. pending home sales rose a stronger-than-expected 3.5 percent in October, suggesting a housing sector on a stable path to recovery.
Justin Lederer, Treasury analyst at Cantor Fitzgerald in New York, said Wednesday's positive data certainly "played a part" in the selloff in Treasuries.
In late trading, the 10-year Treasury yield was up at 2.379 percent, from 2.337 percent late on Tuesday. It hit a two-week high of 2.395 percent.
U.S. two-year yields, which climbed to a nine-year peak last week, were at 1.762 percent from 1.758 percent on Tuesday. Two-year yields, the most sensitive maturity to rate hike expectations, touched a one-week peak of 1.778 percent.
U.S. 30-year bond yields were up at 2.818 percent from Tuesday's 2.765 percent. Earlier, 30-year yields hit a two-week high of 2.837 percent.
Cantor's Lederer said the market found buyers "at the bottom" and had stabilized in the afternoon session.
Tom di Galoma, managing director at Seaport Global Holdings in New York also attributed part of the selling in Treasuries that bolstered yields to the sell-off in UK bonds.
British 10-year government bond yields rose by the most in a day since June, lifted by reports Britain was close to a deal with the European Union on how much it needs to pay to exit the bloc.
November 29 Wednesday 4:07PM New York / 2107 GMT Price US T BONDS DEC7 153-8/32 -1-1/32 10YR TNotes DEC7 124-168/256 -0-80/25 6 Price Current Net Yield % Change (bps) Three-month bills 1.27 1.2918 -0.005 Six-month bills 1.425 1.4553 0.007 Two-year note 99-250/256 1.762 0.004 Three-year note 99-172/256 1.8644 0.016 Five-year note 99-138/256 2.0976 0.032 Seven-year note 99-8/256 2.2755 0.046 10-year note 98-216/256 2.381 0.044 30-year bond 98-148/256 2.8206 0.056 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 17.75 0.50 spread U.S. 3-year dollar swap 17.50 0.25 spread U.S. 5-year dollar swap 6.00 -0.50 spread U.S. 10-year dollar swap -1.00 0.00 spread U.S. 30-year dollar swap -24.00 -0.50 spread (Reporting by Gertrude Chavez-Dreyfuss; Editing by Andrew Hay and Susan Thomas)