TREASURIES-Yields dip as Yellen avoids monetary policy in speech

(Recasts with Yellen's speech, updates prices)

* Yellen does not address monetary policy

* ECB's Draghi speech in focus

* U.S. capital goods orders rise in July

By Karen Brettell

NEW YORK, Aug 25 (Reuters) - U.S. Treasury yields dipped

slightly on Friday after Federal Reserve Chair Janet Yellen did

not mention monetary policy in a highly anticipated speech,

relieving some investors who thought she might make hawkish

comments on the economy.

At a conference in Jackson Hole, Wyoming, Yellen said that

reforms put in place after the 2007-2009 financial crisis have

strengthened the financial system without impeding economic

growth, and any future changes should remain modest.

“We’re seeing a little bit of a relief that (Yellen) wasn’t

hawkish rally in Treasuries, but it’s minor,” said John Briggs,

head of strategy for the Americas at NatWest Markets in

Stamford, Connecticut.

Benchmark 10-year notes gained 5/32 in price to

yield 2.176 percent, down from 2.194 percent on Thursday.

European Central Bank President Mario Draghi was also due to

address the annual economic policy conference later on Friday.

Investors will watch for any signals that the ECB is close

to paring its bond purchases, though two sources have told

Reuters that Draghi will also not deliver any new policy message

at the event.

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, suggesting an acceleration in business

spending early in the third quarter.

(Additional reporting by Sam Forgione; Editing by Meredith

Mazzilli)

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