TREASURIES-Yields rise on growth hopes, impending supply

* Investors bet on inflation, higher growth under Trump * Heavy corporate supply, Treasury issuance weighs * Higher European debt yields adds to U.S. weakness By Karen Brettell NEW YORK, Jan 20 (Reuters) - U.S. Treasury yields rose on Friday as investors evaluated the prospect of faster growth and higher inflation before Donald Trump's inauguration as U.S. president.

Investors have bet that Trump will adopt fiscal policies to boost the economy, although some have become wary as they await details of new stimulus plans.

New Treasury supply to finance any new government spending is also likely, which may further drag on bonds and send yields higher.

"Clients believe that what you are going to see down the road is more supply by this administration, whether it's a 50-year bond or just more supply to finance what they want to do in infrastructure and how they want to move the economy along," said Tom di Galoma, managing director at Seaport Global in New York.

Benchmark 10-year notes fell 7/32 in price to yield 2.48 percent, up from 2.46 percent late on Thursday. The yields have jumped from a low of 2.31 percent on Tuesday.

Expectations of heavy corporate supply next week is also weighing on the market. The Treasury Department will also sell $88 billion next week in two-, five- and seven-year notes.

"The supply issues are really overwhelming the marketplace," said di Galoma.

A $12 billion sale of 30-year Treasury bonds last week drew relatively weak demand, even after a strong $20 billion auction of 10-year notes the day before.

Rising yields on European sovereign debt also added to selling of U.S. bonds on Friday.

Germany's benchmark 10-year Bund yield rose to a one-month peak of 0.35 percent.

Federal Reserve Chair Janet Yellen said late on Thursday that the U.S. central bank should continue to raise interest rates slowly to keep jobs plentiful and inflation low, in comments that were viewed as more dovish than a speech the previous day.

(Editing by Lisa Von Ahn)