NEW YORK, Nov 26 (Reuters) - U.S. Treasury yields rose

on Tuesday, as a sharp bond rally lost momentum and investors

assessed U.S. President-elect Donald Trump's tariff pledges.

Trump said on Monday he would impose tariffs on products

from Canada, Mexico and China, sparking volatility as investors

braced for trade disputes. The announcement came after a sharp

rally in bonds triggered by Trump's pick of hedge fund manager

Scott Bessent as U.S. Treasury Secretary.

"I wouldn't make too much of today's price action," said

Subadra Rajappa, head U.S. rates strategy at Société Générale,

adding the rebound in yields mostly indicated technical factors

that contributed to the earlier rally had lost some steam.

The rise in yields was not meaningful enough to suggest

inflationary concerns sparked by the tariffs threat, she added.

Benchmark 10-year yields were seen at 4.316%, up

from 4.26% on Monday. Two-year yields, which tend to

more closely reflect monetary policy expectations, were last at

4.287%, up slightly from Monday.

Investors digested a handful of economic data on Tuesday

indicating the economy remained on solid footing. This included

Federal Housing Finance Agency data showing U.S. single-family

house prices increased solidly in September, as well as the

November reading of Consumer Confidence released by the

Conference Board, which was in line with expectations.

Later on Tuesday, investors will keep a close eye on the

minutes of the Federal Open Market Committee meeting held on

November 6-7, which may give clues on the Federal Reserve's

thinking on the pace of future interest rate cuts.

Federal Reserve Bank of Minneapolis President Neel Kashkari

said on Monday he was open to cutting interest rates again in

December, after a 25 basis point cut earlier this month and a 50

basis point cut in September.

On Tuesday, rates futures traders were assigning a 56.2%

probability to a 25 basis point cut next month, slightly above

Monday's expectations.

On the supply side, the Treasury will sell $70 billion in

five-year notes later on Tuesday, following a $69 billion

two-year note auction on Monday that was well received by

investors.

The closely watched yield curve comparing two- and 10-year

Treasury yields steepened on Tuesday and was last

at 2.7 basis points. It had inverted marginally on Monday, with

short-term bonds yielding more than longer-dated ones.