TREASURIES-Bonds steady before Yellen, Draghi speeches

* Fed's Yellen, ECB's Draghi to speak on Friday

* Capital (Other OTC: CGHC - news) goods orders rose in July

By Karen Brettell

NEW YORK, Aug 25 (Reuters) - U.S. Treasury prices were

steady as investors awaited indications of monetary policy from

speeches by prominent central bankers gathered in Jackson Hole,

Wyoming.

Federal Reserve Chair Janet Yellen and European Central Bank

President Mario Draghi are both due to address the annual

economic policy conference in the Rocky Mountains.

“Everything comes down to what Yellen is going to say,” said

Mary Ann Hurley, vice president in fixed income trading at D.A.

Davidson in Seattle.

Investors will be watching to see if Yellen gives any

indication on when the Fed plans to begin reducing its balance

sheet, as well as how she references ongoing weakness in

inflation.

“It will be interesting to see how she touches on inflation

and whether she keeps addressing it as being due to

idiosyncratic factors,” said Hurley.

Market participants will be also watching for any signals

that the ECB is close to paring its bond purchases, though two

sources have told Reuters that Draghi will not deliver any new

policy message at the event.

Benchmark 10-year notes were down 1/32 in price

to yield 2.20 percent, little changed from Thursday.

Yields for benchmark bonds have held in a tight range since

falling to almost two-month lows last Friday on concerns about

political discord in Washington and tensions between the United (Shenzhen: 000925.SZ - news)

States and North Korea.

Data this Friday showed that new orders for key U.S.-made

capital goods rose slightly more than expected in July and

shipments surged, pointing to an acceleration in business

spending early in the third quarter.

(Reporting by Karen Brettell; Editing by W Simon)

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