NEW YORK, Nov 21 (Reuters) - U.S. Treasury yields

slipped on Thursday, drawing safe-haven bids on news of a

Russian missile attack on Ukraine and after a mixed set of

economic data showing the world's largest economy is gradually

slowing.

"Markets are watching geopolitics and signs of Trump

policies (and) there is no clear trend with very small

variations in yields," said Subadra Rajappa, head of U.S. rates

strategy at Societe Generale in New York.

Russia's attack, if confirmed, came after Ukraine fired U.S.

and British missiles at targets inside Russia this week despite

warnings by Moscow it would view such action as a major

escalation.

In midmorning trading, the yield on benchmark U.S. 10-year

notes fell 1.8 basis points to 4.382%.

On the short end of the curve, the U.S. two-year note yield

, which typically moves in step with interest rate

expectations, slipped 1 bp to 4.298%.

U.S. yields dipped after the release of Thursday's economic

data. Weekly jobless claims unexpectedly fell and was slightly

below consensus estimates. However, the number of people

receiving benefits after an initial week of aid, a proxy for

hiring, increased 36,000 to a seasonally adjusted 1.908 million

during the week ending Nov. 9, data also showed.

The Philadelphia Federal Reserve business conditions index,

a barometer of the economic health in the mid-Atlantic region,

fell to 5.5 in November, from a reading of 10.3 last month.

The U.S. yield curve flattened on Thursday, with the gap

between two- and 10-year yields at 8.4 bps, down

from 9.1 bps late on Wednesday. The yield curve has been on a

steepening trend the last few weeks with the launch of the

Federal Reserve's easing cycle in September.

Treasury yields have risen over the past two months since

investors began betting on President-elect Donald Trump's

victory, with Republicans also taking control of Congress.

Market participants are now looking for clarity regarding

Trump's policies, including the next round of jobs and inflation

data that is likely to influence Fed policy.

Investors are also attentive to the choice of the next

Treasury secretary, as Trump widened the list of candidates to

include Apollo CEO Marc Rowan and former Fed Governor Kevin

Warsh, as well as hedge fund manager Scott Bessent.

Investors are also keeping an eye on reactions to arrest

warrants issued by the International Criminal Court for Israeli

Prime Minister Benjamin Netanyahu, as well as a Hamas leader,

Ibrahim Al-Masri, for alleged war crimes and crimes against

humanity in the Gaza conflict.