By Deborah Levine
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NEW YORK (MarketWatch) -- Treasury prices pared gains Friday, pushing yields down a second day, after a report showed U.S. housing starts rose 3.6% in June to a seasonally-adjusted annual rate of 582,000. Ten-year note yields (UST10Y 3.56, -0.05, -1.28%) declined 2 basis points to 3.55%. Economists surveyed by MarketWatch expected housing starts to continue at a 531,000 pace. Traders also kept an eye on the reaction of equities to earnings from General Electric (GE 11.88, -0.52, -4.19%) and Citigroup (C 3.09, +0.06, +1.98%) . Also, a series of hotel blasts in Jakarta early Friday fueled a renewed flight to the relative safety of government debt.
