TREASURIES-Bond yields fall on safety bids, reported Draghi comments

* U.S. stock market dip drives safe-haven bids

* U.S. yields follow European yields lower

* U.S. durable goods fall in August

* U.S. services sector data slips in September (Updates prices, adds comments)

By Sam Forgione

NEW YORK, Sept 25 (Reuters) - U.S. Treasuries yields fell on Thursday after a drop in U.S. stocks triggered safe-haven bids and reported comments from European Central Bank President Mario Draghi drove down rates in the euro zone, making U.S. yields more attractive.

Long-dated Treasuries yields fell to their lowest level in more than two weeks after concerns over a strong U.S. dollar's impact on U.S. corporate earnings and a slump in Apple (NasdaqGS: AAPL - news) shares weighed on U.S. stocks and drove a flight to safety.

"A lot of today's action in Treasuries is fallout from the weakness on Wall Street," said Kim Rupert, managing director at Action Economcs in San Francisco.

A report published on Thursday quoted Draghi as pledging to do more stimulus in Europe if necessary. A day earlier, Draghi had said the ECB will keep monetary policy loose for as long as it takes to push ultra-low inflation in the euro zone back up closer to 2 percent.

After Thursday's report, German 10-year bund yields fell, driving demand for higher-yielding U.S. Treasuries and pushing their yields lower.

"In absolute terms, U.S. Treasury yields are certainly more attractive than their European counterparts," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott LLC in Philadelphia.

The Treasury sold $29 billion in seven-year Treasuries notes to weak demand. Overall bidding, as measured by the bid-to-cover ratio, was at 2.48, its lowest since June.

Economic data on Thursday was mixed. The Commerce Department said durable goods orders dropped 18.2 percent in August, the largest decline since the series started in 1992. The drop, was roughly in line with economists' expectations for an 18 percent drop, according to a Reuters poll.

"I don't think the durables numbers are as bad as the massively negative headline might imply," said LeBas of Janney Montgomery Scott. He cited the overshadowing impact of Boeing (NYSE: BA - news) 's drop in orders for the month.

Markit (Stuttgart: A1139A - news) 's flash services sector Purchasing Managers Index slipped to 58.5 in September from 59.5 in August, declining for a third straight month. A Reuters poll forecast the September reading at 59.0.

Labor Department data, however, showed U.S. initial claims for state unemployment benefits rose to a seasonally adjusted 293,000 for the week ended Sept. 20, below expectations for a rise to 300,000 according to a Reuters poll and suggesting an acceleration in job growth.

Benchmark U.S. 10-year Treasury notes were last up 13/32 in price to yield 2.52 percent, from a yield of 2.57 percent late Wednesday. The yield hit 2.513 percent, its lowest since Sept. 11.

U.S. 30-year Treasury bonds were last up 29/32 to yield 3.236 percent, from a yield of 3.28 percent late Wednesday. The yield hit 3.218 percent, its lowest since Sept. 8.

On Wall Street, the benchmark S&P 500 was last down 1.41 percent. (Reporting by Sam Forgione; Editing by Meredith Mazzilli)