TREASURIES-Bonds ease on jobless claims, personal spending

* Weekly jobless claims fall below 500,000

* Oct consumer spending rises by more than expected

* Durable goods orders unexpectedly fall last month (Adds strategist quote, updates prices)

By Chris Reese

NEW YORK, Nov 25 (Reuters) - U.S. Treasury debt prices eased on Wednesday after a bigger-than-expected dip in weekly jobless claims and larger-than-forecast rise in October consumer spending bolstered hopes of a nascent economic recovery.

Treasuries losses were tempered however by data showing an unexpected fall in new orders for long-lasting U.S. manufactured goods in October, which undermined some expectations that manufacturing would help lead any economic recovery.

"(Jobless) claims were under 500,000 and so this is bond bearish," said David Ader, head of government bond strategy at CRT Capital Group in Stamford, Connecticut, adding however "there is a real mix of information here that leaves us feeling rather neutral about the data to seeing it as a tad soft."

Benchmark 10-year Treasury notes were trading 3/32 lower in price to yield 3.32 percent, up from 3.31 percent late on Tuesday, while the two-year Treasury note was unchanged in price to yield 0.74 percent.

The number of U.S. workers filing new applications for jobless insurance tumbled last week by a surprisingly large amount to the lowest level in more than a year, according to government data.

Initial claims for state unemployment benefits slid to a seasonally adjusted 466,000 in the week ended Nov. 21, from a revised 501,000 in the prior week, the Labor Department said.

Analysts cautioned however that much of the fall may have been due to seasonal adjustments. For details see [ID:nN25548443].

Hopes of an economic recovery were propped up by data showing U.S. consumer spending rose more than expected in October as incomes increased. The Commerce Department said spending increased 0.7 percent, after a revised 0.6 percent fall in September. October's spending was above market expectations for a gain of 0.5 percent.[ID:nN25338535]

Tempering those hopes however was government data showing durable goods orders dropped by 0.6 percent in October after rising by an upwardly revised 2.0 percent in September. Analysts had been looking for durable goods orders to rise by 0.5 percent. [ID:nN25342245]

Investors still have plenty to look forward ahead of the U.S. Thanksgiving Day holiday on Thursday, with the Reuters/University of Michigan Surveys of Consumers index of consumer sentiment for November along with October new homes sales data later on Wednesday morning.

In the afternoon, the Treasury will auction $32 billion of seven-year Treasury notes in the third and final leg of $118 billion of notes sales this week.

The auctions of two-year and five-year notes earlier this week were both met with solid demand. (Reporting by Chris Reese: Editing by Chizu Nomiyama ) ((chris.reese@thomsonreuters.com; +1 646 223 6073; Reuters Messaging: chris.reese.reuters.com@reuters.net))