By Kate Duguid NEW YORK, May 7 (Reuters) - Trading was light and Treasury yields were little changed on Monday with London on holiday ahead of this week's auctions of $73 billion in U.S. government debt and Thursday's release of the Consumer Price Index inflation metric. "This morning is a rerun of light trading activity, only partly due to the London holiday. Data won't demand to be traded until CPI Thursday morning. Traders will spend most of today and the first half of tomorrow working on their auction strategy and determining whether corporate supply will return in earnest this week," said Jim Vogel, interest rate strategist at FTN Financial in Memphis, Tennessee. The Treasury Department's $73 billion refunding package for May is up from the $66 billion it offered in February, with most of the increase coming from short-end maturities. The Treasury will sell $31 billion in three-year notes, $25 billion in 10-year notes, and $17 billion in 30-year bonds. The Treasury on May 2 announced the increased supply of debt to offset the impact of the Federal Reserve's reduction in its bond buying. The new debt supply will also be used to fund the $1.5 trillion the Republican government's tax cut bill will add to the federal deficit. While the quarterly funding program did increase, it nevertheless came in short of analyst expectations. The Treasury will raise the size of the two- and three-year note auctions by just $1 billion per month in the second quarter, compared with the $2 billion increases in the first. Yields on U.S. benchmark 10-year Treasury notes were up slightly on Monday - by 0.8 basis point at 2.952 percent - from their last close. Yields on 30-year bonds were up 1 basis point at 3.123 percent from their last close. Both maturities on Friday slid to two-week lows after a weaker-than-expected April payrolls report, while those on two-year notes fell to a one-week low. Also key this week will be the consumer price report on Thursday, which will be watched closely after the Labor Department on Friday announced that average earnings growth, another closely monitored inflation indicator, rose by just 0.1 percent in April after gaining 0.3 percent the prior month. "CPI is critical. We've moved from watching average hourly earnings from the labor report to looking at the internals of every inflation report, with CPI being the most closely followed," said Vogel. The two-year note was last at 2.505 percent, up modestly from Friday's close at 2.501 percent. May 7 Monday 10:54AM New York / 1454 GMT Price US T BONDS JUN8 143-15/32 -0-6/32 10YR TNotes JUN8 119-168/256 -0-12/25 6 Price Current Net Yield % Change (bps) Three-month bills 1.805 1.838 0.002 Six-month bills 1.9875 2.035 0.005 Two-year note 99-192/256 2.5052 0.004 Three-year note 99-68/256 2.6362 0.006 Five-year note 99-208/256 2.7905 0.010 Seven-year note 99-212/256 2.9023 0.007 10-year note 98-72/256 2.9534 0.009 30-year bond 97-156/256 3.1238 0.010 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 26.25 -0.25 spread U.S. 3-year dollar swap 22.00 0.50 spread U.S. 5-year dollar swap 12.75 0.00 spread U.S. 10-year dollar swap 3.50 0.25 spread U.S. 30-year dollar swap -11.00 0.50 spread (Reporting by Kate Duguid; Editing by Dan Grebler)