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

* Benchmark yields climb 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

(Updates market action)

By Richard Leong

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

on Monday as stronger U.S. stocks 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 bounced from their lowest levels in about

two weeks. The 10-year yield has held below 2 percent as

disappointing domestic data supported bets 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 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 rose on upbeat earnings

from Morgan Stanley (Xetra: 885836 - news) and Hasbro (NasdaqGS: HAS - news) , recovering much of their steep

losses on Friday. The Standard and Poor's 500 index was

up 0.9 percent in late trading after falling 1.13 percent on

Friday on tepid U.S. earnings and renewed Greece worries, among

other factors.

On light trading volume, benchmark 10-year Treasuries notes

were down 13/32 in price with a yield of 1.895

percent, up 4.5 basis points from late on Friday.

The 30-year bond was down 1-11/32 in price,

yielding 2.569 percent, up 6.4 basis points from Friday.

The retreat in the U.S. government bond market 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 and

Andrew Hay)