TREASURIES-Long-dated yields hit nearly 9-month high on Greece hopes – Reuters

* Billions in aid offered to Greece

* U.S. June consumer sentiment jumps

* 30-year yield hits highest since Oct. 3 (Adds comments, updates prices)

By Sam Forgione

NEW YORK, June 26 (Reuters) – U.S. Treasury yields rose on Friday, with long-dated yields hitting a nearly nine-month high, after euro zone partners’ offer to release billions in frozen aid to Greece bolstered optimism for a debt deal and reduced demand for safe-haven U.S. debt.

German Chancellor Angela Merkel and French President Francois Hollande met Greek Prime Minister Alexis Tsipras on the sidelines of an EU summit to coax him to accept an offer to fill Athens’ empty coffers until November in return for painful pension and tax reforms.

The creditors laid out terms in a document handed to Greece on Thursday. It said Athens could have 15.5 billion euros in EU and IMF funding in four installments to see it through to the end of November, including 1.8 billion euros by Tuesday as soon as the Greek parliament approved the plan.

“In absence of other news, the market trades almost anything said by either side in the Greece negotiations,” said Jim Vogel, an interest rate strategist at FTN Financial in Memphis, Tennessee. He said traders were convinced that Greece was giving serious consideration to the latest proposals.

U.S. 30-year Treasury yields hit 3.26 percent, their highest level since Oct. 3. Yields on Treasuries maturing between five and 10 years hit their highest levels since June 11. The more than two-week high for benchmark 10-year note yields was 2.49 percent. Yields on three- and two-year notes hit over one-week highs of 1.10 percent and 0.72 percent, respectively.

Yields move inversely to prices. Yields on Treasuries maturing between 5- and 30-years rose for the first week in three, while two- and three-year yields rose for the first time in two weeks.

“People are trying to get out of fixed income in front of any positive news on Greece,” said Stanley Sun, interest rate strategist at Nomura Securities International in New York.

Data showing a jump in U.S. consumer sentiment in June had only a minor negative impact on Treasuries prices, analysts said, as traders’ focus remained on Greece.

U.S. 30-year Treasuries were last down 1-24/32 in price to yield 3.25 percent, from a yield of 3.16 percent late Thursday. Benchmark 10-year notes were last down 24/32 in price to yield 2.48 percent, from a yield of 2.39 percent late Thursday.

Three-year notes were last down 3/32 in price to yield 1.09 percent, from a yield of 1.06 percent late Thursday. (Reporting by Sam Forgione; Editing by Andrea Ricci and Chizu Nomiyama)