* Dealers sales of this week's supply pressure yields higher
* Long-dated Treasuries on track as top U.S. bonds in May
* Benchmark yields not far above their 11-month lows (Updates market action, adds quote)
By Richard Leong
NEW YORK, May 30 (Reuters) - Benchmark U.S. Treasuries yields rose on Friday as the investor demand that stoked May's bond rally faded and Wall Street dealers sought to resell their share of this week's $95 billion in fixed-rate government debt supply.
The rise in Treasuries yields accelerated on a surprise pickup in a private measure of U.S. Midwest business activities in May, supporting the view of a solid economic rebound in the second quarter after a contraction in the first quarter due partly to a harsh winter.
"You had a redistribution of supply yesterday and that seemed to have continued," said Larry Milstein, head of U.S. government and agencies trading at R.W. Pressprich & Co. in New York.
Longer-dated yields did not stray far above the 11-month lows they set earlier this week on some doubts about the U.S. economic recovery and bets that the European Central Bank might embark on an aggressive stimulus program next week that could end up lowering U.S. and euro zone yields.
"It's mostly about the ECB. The court is for the ECB to relinquish," said Jim Vogel, interest rate strategist at FTN Financial in Memphis, Tennessee.
Treasuries lagged German Bunds with their 10-year yield spread widening a tad from their tightest level in more than 2-1/2 months to 1.10 percent.
A late smattering of buying for month-end portfolio rebalancing emerged, pushing yields from their earlier highs.
The yield on benchmark 10-year U.S. Treasuries ended at 2.459 percent, up 1 basis point from Thursday when it hit 2.422 percent, which was the lowest since last June.
The yield on the 30-year bond last traded at 3.316 percent, up 1 basis point from Thursday when it fell to 3.278 percent, an 11-1/2-month low.
Despite the modest market pullback, Treasuries were on track to produce another month of solid returns. So far in May, they have generated a total return of 0.99 percent, according to an index compiled by Barclays.
The bank's index on Treasuries that mature in 20 years or longer has risen 3.18 percent month-to-date, which would be the best performance among U.S. bonds in May.
On the data front, U.S. Midwest business activity accelerated in May to its strongest since October, the Institute for Supply Management-Chicago said on Friday.
Other news on the U.S. economy was mixed.
Thomson Reuters and the University of Michigan's final May reading on U.S. consumer sentiment was a bit below forecast, while the government said personal spending unexpectedly dipped 0.1 percent in April, raising some concerns about growth in the second quarter. (Reporting by Richard Leong; Editing by Paul Simao and Chizu Nomiyama)