(Corrects price change in 2nd paragraph to 23/32)

Aug 12 (Reuters) - U.S. Treasury yields extended their fall on Friday after weaker-than-expected readings on U.S. retail sales and producer prices.

Benchmark 10-year Treasury notes rose 23/32 in price for a yield of 1.493 percent, down about 8 basis basis points from their late Thursday close. The 30-year Treasury bond rose 1-10/32 in price to yield 2.228 percent, nearly 7 basis points lower than its Thursday closing level.

U.S. retail sales were flat for July, missing economists' expectations for a modest rise, and producer prices unexpectedly fell last month on declining costs for services and energy products.

(Reporting by Dion Rabouin; Editing by Chizu Nomiyama)