NEW YORK, July 18 (Reuters) - U.S. Treasury yields modestly pared declines on Friday after data showed housing starts on the world's largest economy rose 4.6% in June, exceeding economists' forecasts.
The benchmark 10-year yield was down 3.7 basis points (bps) at 4.426% US10YT=RR after the housing data, compared with 4.435% right before the data's release. The two-year yield, which reflects interest rate expectations, also trimmed its fall to 3.712% US2YT=RR, from 3.884%.