TREASURIES-Prices advance as risk tolerance slides with weak stocks

* Ten-year yields could fall to 1.15 to 1.10 percent range

-SocGen (Paris: FR0000130809 - news)

* U.S (Other OTC: UBGXF - news) . yields edge higher after upbeat U.S. housing starts

(Adds U.S. data, comment, updates prices)

By Gertrude Chavez-Dreyfuss

NEW YORK, July 19 (Reuters) - U.S. Treasury debt prices rose

on Tuesday as risk appetite soured following declines in stocks,

weighed down by a drop in oil prices and poor consumer sentiment

data in Germany.

Yields on U.S. 10-year notes and 30-year bonds fell as a

result after three days of gains while those on the short end of

the curve were mixed.

U.S. stocks were mostly lower on Tuesday, in line

with overall weakness in global equities. Global bond yields

were also weaker in general, with German 10-year bunds

at -0.084 percent.

Treasury yields, which move inversely to prices, did inch

higher after data showed U.S. housing starts rose more than

expected in June, while building permits increased 1.5 percent

last month.

"U.S. data since the nonfarm payrolls report for June has

been better than expected and so that has resulted in slightly

higher yields," said Bruno Braizinha, interest rates strategist

at Societe Generale (Swiss: 519928.SW - news) in New York.

"But this overwhelming demand for Treasuries is sure to keep

the yields even lower," he added.

Demand for Treasuries in almost all auctions and in the

secondary market has been robust given negative yields in major

economies such as Japan and Germany, analysts said.

Societe Generale, in a recent research note, suggested that

given investors' healthy appetite for Treasuries, it estimated

that U.S. 10-year yields could fall to the 1.15 to 1.10 percent

range.

In mid-morning trading, benchmark U.S. 10-year Treasury

notes were up 6/32 in price for a yield of 1.564

percent, down from 1.587 percent late on Monday.

U.S. 30-year bond prices were higher as well, up

12/32 in price, yielding 2.285 percent, down from 2.302 percent

late Monday.

U.S. two-year notes were little changed in price,

with a yield of 0.697 percent.

July 19 Tuesday 10:27AM New York / 1427 GMT

Price

US T BONDS SEP6 171-31/32 0.40625

10YR TNotes SEP6 132-40/256 0.125

Price Current Net Change

Yield % (bps)

Three-month bills 0.3225 0.3273 0.000

Six-month bills 0.43 0.4369 0.000

Two-year note 99-220/256 0.6979 0.008

Three-year note 99-188/256 0.8402 -0.003

Five-year note 100-4/256 1.1217 -0.008

Seven-year note 99-240/256 1.3844 -0.019

10-year note 100-136/256 1.5663 -0.021

30-year bond 104-156/256 2.2859 -0.016

DOLLAR SWAP SPREADS

Last (bps) Net Change

(bps)

U.S. 2-year dollar swap 20.00 -0.75

spread

U.S. 3-year dollar swap 12.75 0.00

spread

U.S. 5-year dollar swap -2.00 0.25

spread

U.S. 10-year dollar swap -14.25 0.50

spread

U.S. 30-year dollar swap -45.75 0.00

spread

(Reporting by Gertrude Chavez-Dreyfuss; Editing by James

Dalgleish)