Wires

TREASURIES-Bond prices rise as global growth fears come to fore

* Growth, Greece worries stoke safety bids for bonds

* U.S. sells $32 bln in 3-year note supply

* Fed buys $1.89 billion in long-dated debt

* Long bond yield dips below 200-day moving average

(Updates on 30-year bonds)By Richard Leong

NEW YORK, Oct 9 (Reuters) - U.S. Treasuries prices advancedon Tuesday as investors, worried about bleak views of globalgrowth and the upcoming earnings season, dumped riskier assetsto pour money into safe havens.

The International Monetary Fund, one of Greece's mainlenders, said in a report on Tuesday that Athens would miss thefive-year debt reduction target that is a condition for thecountry's 130 billion euro bailout.

The group also warned the United States faces meager growthof about 2.0 percent this year and in 2013 and predicted a 0.4percent contraction in the euro zone this year. It alsodowngraded its outlook on China, the world's second-largesteconomy.

The IMF outlook "was adding to the downbeat sentiment. Itwas a confirmation of slow growth globally," said GennadiyGoldberg, an interest rate strategist with TD Securities in NewYork. "That's why we are setting back into this trading range."

Key U.S. stock indexes also dropped as investors awaitedwhat many fear could be a disappointing earnings season.

"Earnings season is under way, and it does not bode to beparticularly good," said David Ader, head of government bondstrategy at CRT Capital Group in Stamford, Connecticut.

"I'd like to see whether that takes the edge off stocks andother risk assets," he added.

Thomson Reuters data through Friday showed 90 companies inthe S&P 500 have lowered outlooks versus 21 raised outlooks. Theresulting ratio of negative to positive outlooks of 4.3 is theweakest showing since the third quarter of 2001.

The concerns about Greece and global growth overshadowedFriday's government report that the U.S. jobless rate fell inSeptember to 7.8 percent, the lowest level since January 2009.The lower jobless rate and other surprisingly upbeat aspects ofthe Labor Department's September payroll report led to asell-off in Treasuries on Friday and pushed benchmark yields totheir highest levels in about two weeks.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Graphic:Euro debt crisis

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The U.S. bond market was closed on Monday for to theColumbus Day holiday.

Safe-haven appetite for Treasuries was mitigated by someselling by bond dealers in anticipation of this week's $66billion in coupon supply.

In addition, the Treasury Department sold $32 billion inthree-year notes on Tuesday at a high yield of 0.346 percent.

The Treasury Department will sell $21 billion in 10-yeardebt on Wednesday and $13 billion in 30-year bonds on Thursday.

In addition, the Federal Reserve resumed transactions underits Operation Twist program, which involves sellingshorter-dated Treasuries and purchasing longer-dated issues in abid to hold down long-term borrowing costs to help the economy.It bought $1.89 billion in Treasuries due in February 2036 toAugust 2042.

Fed Vice Chairwoman Janet Yellen was scheduled to speak at8:30 p.m. (0030 GMT) about sovereign risk and financial marketsat an event sponsored by the IMF and the Japanese Ministry ofFinance.

"The market is struggling with a lot of moving parts," saidRobert Tipp, chief investment strategist with Prudential FixedIncome in Newark, New Jersey. "At the end of the day, we'll bein a pretty tight trading range."

On the open market, benchmark 10-year notes

were

up 06/32 in price to yield 1.713 percent, down from 1.748percent late on Friday, the highest level since Sept 24.

Thirty-year bonds

rose 25/32 in price to yield2.930 percent, down from Friday's close of 2.9703. The 30-yearyield slipped below its 200-day moving average of 2.939 percent,according to Reuters data.

Wall Street stocks fell, with the Standard & Poor's 500index

0.77 percent lower. Traders will focus on theearnings of Dow component Alcoa

after the market close.Analysts expect the aluminum producer broke even in the thirdquarter.

(Additional reporting by Luciana Lopez; Editing by Dan Greblerand Leslie Adler)

((luciana.f.lopez@thomsonreuters.com)(+1 646 223 6319)(ReutersMessaging: luciana.f.lopez.thomsonreuters.com@reuters.net))

((-------MARKET SNAPSHOT AT 2:43 p.m. EDT (1843 GMT)-------March T-Bond(+)March 10-Year note(+)Change vs CurrentNyk yieldThree-month bills0.0975 (+0.00) 0.099Six-month bills0.14 (+0.00) 0.142Two-year note99-31/32 (+) 0.262Five-year note99-26/32 (+02/32) 0.66210-year note99-07/32 (+06/32) 1.71330-year bond96-14/32 (+25/32) 2.930DOLLAR SWAP SPREADSLAST ChangeU.S. 2-year dollar swap spread 12.00 (-1.75)U.S. 3-year dollar swap spread 11.75 (-1.50)U.S. 5-year dollar swap spread 13.50 (-0.50)U.S. 10-year dollar swap spread 5.75 (-0.50)

U.S. 30-year dollar swap spread -22.00 (-0.75)))

Keywords: MARKETS USA BONDS/