TREASURIES-Prices rise as data disappoint; Fed eyed

* Yields fall as consumer confidence, retail sales

disappoint

* White House says no decision yet on next Fed chair

* Fed buys $3.70 bln in notes due 2019, 2020

By Karen Brettell and Luciana Lopez

NEW YORK, Sept 13 (Reuters) - Prices for benchmark U.S.

Treasuries rose slightly on Friday after weak economic data

bolstered the view that policymakers might slow an exit from a

bond-buying program designed to boost growth in the world's

biggest economy.

Analysts expect the U.S. Federal Reserve to cut its $85

billion per month buying of Treasuries and mortgage-backed

securities at its next policy meeting on Sept. 17 and 18.

But mixed data on the health of the U.S. economy have

clouded the outlook for the Fed, underscoring the dangers should

policymakers pull back on the quantitative easing stimulus

program too hard before the economy can stand on its own.

Data on Friday added to that murkiness: Yields hit session

lows after data showed that consumer sentiment fell to a

five-month low in September as mortgage rates rose and fears

over conflict with Syria increased.

In addition, retail sales increased a lower-than-expected

0.2 percent last month as Americans cut back on clothing,

building materials and sporting goods.

"We started getting some weak economic data," said Charles

Comiskey, head of Treasuries trading at the Bank of Nova Scotia (Other OTC: BKSHF - news)

in New York.

The White House said it had not yet made a decision on its

pick to lead the Federal Reserve after a Japanese newspaper

reported that Lawrence Summers would soon be named. Summers is

viewed as more hawkish than Fed Vice Chair Janet Yellen, who is

also seen as a leading contender for the job, and is more likely

to raise interest rates at a faster pace.

"The fact that the Summers story was discredited by the

White House brought people back in to buy the belly of the

curve," Comiskey said.

U.S. benchmark 10-year Treasury notes were last

up 2/32 in price to yield 2.900 percent, from 2.91 percent late

on Thursday. They have fallen from a two-year high of 3.01

percent last Friday.

Thirty-year bonds traded flat in price to yield

3.849 percent.

The weakening data comes at an awkward time for the Fed. The

U.S. central bank will release the statement from its two-day

meeting on Wednesday.

Still, analysts said the Fed would probably still taper -

but by how much is the question.

"The bigger event will be next week's FOMC meeting where

we're looking for the Fed to announce their tapering plans

somewhere in the area of $10-billion-a-month reduction," said

Sean Murphy, a Treasuries trader at Societe Generale (Paris: FR0000130809 - news) .

The Fed bought $3.70 billion in notes due 2019 and 2020 on

Friday as part of its ongoing purchase program.

Bonds have also gained a bid after the Treasury completed

the sale of $65 billion in new debt to strong demand, in part

because investors unlocked hedges placed ahead of Verizon (NYSE: VZ - news) 's

record-breaking $49 billion bond sale on Wednesday.