TREASURIES-Prices edge up as U.S. new-home sales fall

* U.S. new-home sales weaker than expected.

* U.S. 30-year bond yields fall to seven-week low

* U.S. 10-year note yields slide to two-week trough

By Gertrude Chavez-Dreyfuss

NEW YORK, July 24 (Reuters) - U.S. Treasury debt prices drifted higher on Friday in choppy trading, as investors sought safety in government bonds after a softer-than-expected U.S. housing report and amid a persistent downtrend in commodities and weakness on Wall Street.

U.S. 30-year bond yields, which move inversely to prices, fell to a seven-week low, while benchmark U.S. 10-year yields slid to a two-week trough.

An unexpected drop in U.S. new-home sales further underpinned the rally in the Treasury market. Data showed on Friday that sales of new single-family houses dropped 6.8 percent in June to a 482,000-unit annual rate. The consensus forecast was 517,000.

"Overall, a weaker-than-expected release that has marginally supported the Treasury market, although we'll concede the limited price action has done little to help aspirations for a larger move," said Ian Lyngen, senior government bond strategist at CRT Capital in Stamford, Connecticut.

The U.S. Treasury market took its cue from stocks and commodities. The S&P 500 was lower on the day while the Thomson Reuters CRB index of commodities was down 0.4 percent.

"It's becoming a trend this week - yields falling. Obviously, there's not a lot of data this week, said Stanley (Shenzhen: 002588.SZ - news) Sun, interest rate strategist at Nomura Securities in New York.

"So the Treasury market right now is kind of hostage to other macro markets."

In mid-morning trading, benchmark 10-year Treasury notes were flat in price to yield 2.284 percent. Yields earlier fell to 2.255 percent, the lowest since July 9.

U.S. 30-year bonds were up 6/32 in price to yield 2.972 percent. Yields earlier fell to 2.95 percent, the lowest since June 2.

U.S. seven-year notes were flat in price as well, yielding 2.03 percent. Earlier, seven-year yields fell to a two-week low of 2.001 percent. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Steve Orlofsky)