TREASURIES-U.S. bond sell-off resumes after April losses

* Traders brush off misses in U.S. factory, construction

data

* Treasuries lost 0.53 pct in April after March

gains-Barclays (Swiss: BARC.SW - news)

* Benchmark yields on track for worst week since early March

(New (KOSDAQ: 160550.KQ - news) throughout, updates prices and market activity, adds

comments)

By Richard Leong

NEW YORK, May 1 (Reuters) - U.S. Treasuries prices declined

on Friday with benchmark yields hitting seven-week highs, as

traders who have been rethinking the global interest rate

outlook continued to bail out of bullish bond bets.

Traders brushed off mild misses on U.S. data on

manufacturing, car sales and consumer sentiment.

Investors pared holdings of U.S. government debt in April,

as heavy debt supply and less pessimism about Europe reduced the

safe-haven allure of Treasuries, German Bunds and British gilts.

"The fundamentals in Europe are turning and there may be an

acknowledgement of that," said Jeffrey Rosenberg, chief

investment strategist for fixed income at New York-based

BlackRock (NYSE: BLK - news) , the world's biggest asset manager.

The yield on benchmark 10-year Treasury notes

was up 6 basis points at 2.103 percent after hitting the highest

in nearly seven weeks at 2.121 percent. The 10-year yield was on

track for its biggest weekly rise since early March.

German 10-year Bund yield jumped nearly 21 basis

points on the week, the biggest such move since June 2013, while

the yields on medium-term German debt moved into positive

territory for the first time since January, according to Reuters

data.

"There's been some meaningful inflection points tested

here," Rosenberg said.

Trading volume was light as major European markets were

closed for the May Day holiday.

For the month of April, U.S. Treasuries produced a total

loss of 0.53 percent, following a 0.63 percent gain in March, an

index compiled by Barclays (LSE: BARC.L - news) showed.

The selling in Treasuries has been mitigated by the absence

of a deal between Greece and its creditors and the view the

Federal Reserve will refrain from raising interest rates at its

next meeting in June.

Most analysts expect the U.S. central bank will not end its

near zero interest policy until September at the earliest.

Investors and Fed policy-makers will be attuned to signs of

an economic upturn after a measly 0.2 percent growth in the

first three months.

The Institute for Supply Management said its monthly index

on national factory activity was unchanged at 51.5 in April,

matching the 22-month low set in March. Economists had forecast

an April figure of 52.0.

The government said construction spending fell 0.6 percent

in March to its lowest since September. Analysts had forecast a

0.5 percent rise.

These soft readings were offset by University of Michigan's

consumer sentiment index which ended April at 95.9, up from 93.0

in April. Car (HKSE: 0699.HK - news) makers were reporting stronger April sales than

March.

(Reporting by Richard Leong; Editing by Chizu Nomiyama and

David Gregorio)