(Updates prices at 11:06 a.m ET/1506 GMT)

By Sinéad Carew and Alun John

NEW YORK/LONDON, May 28 (Reuters) - A global equities

index fell slightly on Tuesday while Treasury yields rose as

investors awaited inflation data due later in the week for

potential clues about the outlook for U.S. interest rates.

U.S. Treasury yields turned positive after the latest crop

of U.S. economic data. U.S. consumer confidence unexpectedly

improved in May amid optimism about the labor market after

deteriorating for three consecutive months, a survey showed.

Earlier data showed U.S. house price growth slowed sharply in

March, likely as rising mortgage rates weighed on demand.

Investors are waiting for U.S. inflation data with the U.S.

core Personal Consumption Expenditures Price Index report for

April, due on Friday. The Fed's preferred inflation barometer is

expected to hold steady on a monthly basis.

"The Fed is still in play. ... Real interest rates need to

come down," said Kim Forrest, chief investment officer at Bokeh

Capital Partners. "Overall, inflation is trending down, and

slowing inflation will give the Fed cover to lower rates."

On Tuesday at 11:06 a.m. ET (1506 GMT), the Dow Jones

Industrial Average fell 160.86 points, or 0.41%, to

38,908.73, the S&P 500 lost 0.90 points, or 0.02%, to

5,303.82 and the Nasdaq Composite gained 66.46 points,

or 0.39%, to 16,987.26.

Also inflation data in the euro zone is released later in

the week.

MSCI's gauge of stocks across the globe fell

1.17 points, or 0.15%, to 792.18 while Europe's STOXX 600

index fell 0.72%.

In Treasuries, yields initially slipped after the house

price data but regained some ground after the consumer

confidence survey release.

The bond market is also facing massive supply on Tuesday

with the auction of $69 billion in new U.S. two-year notes and

$70 billion in five-year Treasuries.

The yield on benchmark U.S. 10-year notes rose

1.4 basis points to 4.487%, from 4.473% late on Friday.

The 30-year bond yield rose 3.3 basis points to

4.6104% from 4.577% late on Friday.

The 2-year note yield, which typically moves in

step with interest rate expectations, fell 2.4 basis points to

4.9289%, from 4.953% late on Friday.

In currencies, the dollar index, which measures the

greenback against a basket of currencies including the yen and

the euro, fell 0.09% at 104.47, with the euro up 0.12% at

$1.0871. Against the Japanese yen, the dollar

strengthened 0.01% at 156.87.

Global oil prices were higher as the prospect of OPEC+

maintaining oil supply curbs at its June 2 meeting and hopes of

strong U.S. summer fuel demand balanced concern about

higher-for-longer U.S. interest rates.

U.S. crude gained 2.26% to $79.48 a barrel and Brent

rose to $83.8 per barrel, up 0.84% on the day.

Gold prices held steady, buoyed by a slight pullback in the

dollar as investors looked forward to U.S. inflation data.

Spot gold added 0.18% to $2,354.98 an ounce. U.S.

gold futures gained 1.17% to $2,359.70 an ounce.