TREASURIES-U.S. bond prices fall as stock gains pare bids

* Benchmark yields not far from near 2-week lows

* Worries about Greek exit from euro zone cap market decline

* Fed's Dudley sees U.S. rate hike later 2015, still

cautious

By Richard Leong

NEW YORK, April 20 (Reuters) - U.S. Treasuries prices fell

on Monday as stronger U.S. stock prices reduced safe-haven

demand for bonds, though traders remained wary about the future

of cash-strapped Greece staying in the euro zone bloc.

Benchmark yields hovered at their lowest levels in about two

weeks as disappointing domestic data supported the view that the

U.S. Federal Reserve will likely refrain from raising interest

rates until later this year.

"There was a flight-to-quality bid before last weekend from

Greece. You are now giving some of it that back," said Thomas

Roth, executive director of U.S. government trading at

Mitsubishi UFJ Securities USA in New York.

The three major Wall Street indexes opened higher on upbeat

earnings from Morgan Stanley (Xetra: 885836 - news) and Hasbro (NasdaqGS: HAS - news) following steep losses

on Friday.

On light trading volume, benchmark 10-year Treasuries notes

were down 4/32 in price with a yield of 1.863

percent, up 1 basis point from late on Friday.

The 30-year bond was down 18/32 in price,

yielding 2.533 percent, up 3 basis points from Friday.

The modest pullback in U.S. government bonds came as there

was little progress on a debt deal between Greece and its

creditors.

European Central Bank officials have downplayed the chances

of Greece leaving the euro zone, while there have been reports

about Greece and regional policy-makers considering

contingencies if such a move occurs.

ECB Governing Council member Ewald Nowotny told CNBC on

Monday that a Greek exit would have less impact than it would

have had two years ago.

Amid the risk of a Greek exit, which would hurt Europe and

possibly the global economy, and recent weak domestic data, some

Fed officials have been cautious on the U.S. central bank ending

its near-zero rate policy too soon.

The data will "hopefully" support a rate hike later this

year, New York Fed President William Dudley said at the

Bloomberg Americas Monetary Summit on Monday. But "the timing of

normalization remains uncertain because how the economy evolves

is also uncertain," he added.

(Reporting by Richard Leong; Editing by Meredith Mazzilli)