TREASURIES-Yields rise on Greek deal, corporate bond sale weighs

(Adds details on CVS deal, updates prices)

* Greek deal reduces safe-haven bond buying

* Focus on Fed after hawkish Yellen speech

* Large CVS bond deal weighs on market

By Karen Brettell

NEW YORK, July 13 (Reuters) - U.S. Treasury yields rose on

Monday after Greek and euro zone leaders reached a deal that is

likely to keep Greece in the single currency and as a large

corporate bond deal weighed on the market.

Euro zone leaders made Greece surrender much of its

sovereignty to outside supervision in return for talks on an

86-billion-euro bailout to keep the near-bankrupt country within

the single currency union.

The news reduced safe-haven buying of U.S. debt and boosted

riskier assets including equities.

Drugstore chain CVS Health also came to market with

a bond sale of up to $15 billion to finance its acquisitions of

Omnicare (NYSE: OCR - news) and Target Pharmacies, according to

IFR, a Thomson Reuters (Dusseldorf: TOC.DU - news) service.

The CVS deal "definitely put some pressure on the market,"

said Dan Mulholland, head of Treasuries trading at Credit

Agricole in New York.

Benchmark 10-year notes were last down 10/32 in

price to yield 2.43 percent, up from 2.38 percent before the

Greek deal was announced earlier on Monday. The yields have

risen from a low of 2.18 percent on Thursday as hopes for a

resolution increased.

Yields also increased as investors anticipated the Federal

Reserve is closer to raising interest rates for the first time

in nearly ten years, after Fed Chair Janet Yellen said on Friday

she expects a rate hike at some point this year.

"Everyone is waiting for Yellen's remarks after her comments

on Friday, which were fairly hawkish," said Gennadiy Goldberg,

an interest rate strategist at TD Securities in New York.

Yellen is due to give her Humphrey-Hawkins (NasdaqGS: HWKN - news) testimony to

Congress on Wednesday and Thursday.

Investors now expect that the Fed is likely to begin raising

rates at its September meeting.

"I think they are very close to hiking rates and the market

is now finally starting to understand that," said Goldberg.

U.S. economic data will be closely evaluated for signs that

growth is improving at a pace that will allow the Fed to begin

raising rates.

The next major economic report will be retail sales data for

June, due out on Tuesday.

(Editing by Bernadette Baum and Meredith Mazzilli)