* Optimism over Brexit deal boosts risk appetite
* China hopes to reach trade deal with U.S. soon
* Mid-Atlantic factory activity slowed in October
By Karen Brettell
NEW YORK, Oct 17 (Reuters) - U.S. Treasury yields rose to their highest in almost a month on Thursday after Britain clinched a last-minute Brexit deal with the European Union, easing concerns about a disorderly exit.
British Prime Minister Boris Johnson still faces a challenge in getting the deal approved by parliament in a vote at an extraordinary session on Saturday intended to pave the way for an orderly departure on Oct. 31.
“The market is at this point really heavily influenced, if not totally driven, by headlines related to Brexit and whether or not it looks like a deal is on,” said Thomas Simons, a money market economist at Jefferies in New York.
Benchmark 10-year notes rose as high as 1.799%, a level last reached on Sept. 19, before dropping back to 1.754%.
Investors are also focused on the likelihood that the United States and China will reach a deal to end their protracted trade war, which has been blamed for harming global growth.
China hopes to reach a phased agreement and cancel tariffs as soon as possible, the Commerce Ministry said on Thursday, adding that trade wars have no winners.
Optimism over the Brexit deal offset U.S. data that showed a deceleration in factory activity in the mid-Atlantic region in October. U.S. homebuilding also fell from a more than a 12-year high in September.
Data on Wednesday showed that U.S. retail sales fell for the first time in seven months in September, adding to concerns that the U.S. economy is slowing.
The Federal Reserve is expected to cut rates when it meets on October 29-30, though Fed policymakers are divided on whether further cuts are needed for the economy.