NEW YORK, July 17 (Reuters) - U.S. lender CIT's bonds firmed modestly on Friday, after traders in the government debt market said there was speculation a buyer might be found for the struggling lender.

The price of CIT CIT.N's 5 percent notes due in 2014 rose to 54.88 cents on the dollar on Friday morning from about 53 cents late on Thursday afternoon, according to MarketAxess. (Reporting by John Parry; Editing by Theodore d'Afflisio)