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TREASURIES OUTLOOK-Yields fall as Powell seen likely Fed chair pick

* Data, Fed meeting, Fed chair announcement in focus

* Treasury's Mnuchin sees low demand for ultra-long bonds

NEW YORK, Oct 30 (Reuters) - U.S. Treasury yields fell on Monday on news reports that U.S. President Donald Trump is likely to appoint Federal Reserve Governor Jerome Powell, who is viewed as more dovish than other contenders, as head of the Federal Reserve. A source familiar with the matter said on Monday that Powell is likely to replace Janet Yellen. Trump is expected to announce his choice on Thursday, a White House official said separately.

You are getting a bull steepener, which suggests that the market is pricing in slightly fewer rate hikes, which would be consistent with Powell, said Gennadiy Goldberg, an interest rate strategist at TD Securities in New York. So-called bull steepening is when shorter-term rates, which are more sensitive to interest rate hikes, fall at a faster pace than longer-term bond yields. The yield curve between five-year notes and 30-year bonds steepened as high as 90.50 basis points, up from 88.8 basis points on Friday.

Benchmark 10-year notes gained 15/32 in price to

yield 2.37 percent, down from 2.43 percent on Friday. Bonds were also supported after Bloomberg reported that lawmakers are considering a five-year plan to gradually phase in corporate tax cuts, which would have the rate reach 20 percent in 2022. Investors have hoped that near-term tax cuts would boost economic growth. Thirty-year bond yields fell to their lowest levels in a week, reversing the earlier yield curve steepening, after Bloomberg quoted Treasury Secretary Steven Mnuchin saying that the government doesn't see a lot of demand for ultra-long bonds. Munchin added that the Treasury will continue to monitor demand for the debt. Some analysts have expected that the government to introduce a new ultra-long debt maturity as its funding needs increase. Bonds are expected to be volatile this week with numerous market catalysts including a heavy slate of economic data, the Treasury Departments refunding plans, a Fed meeting and the expected Fed chair announcement. It is a very busy week, (with) a lot of potentially market-moving events already on the calendar, said Thomas Simons, a money market economist at Jefferies in New York. The main economic focus this week is Fridays U.S. jobs report for October. The Fed is expected to leave interest rates unchanged when it concludes its two-day policy meeting on Wednesday. The Treasury Department is also due to announce its funding needs for the next two quarters on Wednesday.

(Editing by Meredith Mazzilli and Nick Zieminski)