TREASURIES-Longer-dated U.S. yields slip after Draghi's remarks

* ECB's Draghi pushes back on speculation on bond tapering

* Yields rise after Draghi says extraordinary measures not

forever

* Domestic data support view on possible December U.S. rate

hike

* U.S. sells $5 billion 30-year TIPS to solid investor

demand

(Updates market action, adds quote)

By Richard Leong

NEW YORK, Oct (HKSE: 3366-OL.HK - news) 20 (Reuters) - Longer-dated U.S. Treasury

yields fell on Thursday after European Central Bank President

Mario Draghi said there was no discussion at the ECB's latest

policy meeting on possible changes to its 1 trillion-plus euro

bond purchase program.

Draghi's comments countered speculation the ECB may begin

paring its monthly purchases of assets with its stimulus program

possibly concluding as early as March 2017.

"Draghi was pretty emphatic about not talking about

tapering," said Brian Daingerfield, macro strategist at RBS (LSE: RBS.L - news)

Securities in Stamford, Connecticut. "That was supportive for

the overall market."

In light, choppy trading, benchmark 10-year Treasury notes

were unchanged in price to yield 1.752 percent,

while the 30-year bond was up 8/32 in price,

yielding 2.501 percent, which was down more than 1 basis point

from Wednesday.

"The 1.75 percent level seems to be a magnet for 10-years

where people feel comfortable," said Mike Lorizio, senior fixed

income trader at Manulife Asset Management in Boston.

Longer-dated yields rose briefly when Draghi, in reply to a

reporter's question on whether extraordinary policy support

could stay in place forever, said: "And the answer is, of

course, no."

Draghi said any discussion on ECB policy will likely take

place at its Dec (Shanghai: 600875.SS - news) . 8th meeting.

Data on U.S. jobless claims and existing home sales released

on Thursday supported the view of moderate U.S. economic growth.

First (Other OTC: FSTC - news) -time filings for unemployment benefits rose more than

expected to 260,000 last week, but they remained below a level

that is tied to a sturdy jobs market, while home resales grew

3.2 percent in September, stronger than analyst forecasts.

The mildly encouraging data supported expectations the

Federal Reserve may raise interest rates at its Dec. 13-14

meeting, traders said.

U.S. interest rates futures implied traders saw over a 70

percent chance of a rate hike in December, according to CME

Group's FedWatch program.

Shorter-dated yields were up 2 basis points on the day.

On the supply front, the Treasury Department sold $5 billion

in 30-year Treasury Inflation Protected Securities to sturdy

investor demand, resulting in the lowest yield since February

2013, according to Treasury data.

October 20 Thursday 3:45PM New York / 1945 GMT

Price

US T BONDS DEC6 164-18/32 0-11/32

10YR TNotes DEC6 130-56/256 -0-12/25

6

Price Current Net

Yield % Change

(bps)

Three-month bills 0.3275 0.3323 -0.005

Six-month bills 0.4575 0.4649 -0.005

Two-year note 99-220/256 0.8231 0.020

Three-year note 100-16/256 0.9787 0.019

Five-year note 99-106/256 1.2476 0.014

Seven-year note 98-228/256 1.5441 0.007

10-year note 97-188/256 1.7521 0.000

30-year bond 94-184/256 2.5023 -0.013

DOLLAR SWAP SPREADS

Last (bps) Net (LSE: 0LN0.L - news)

Change

(bps)

U.S. 2-year dollar swap 23.75 0.75

spread

U.S. 3-year dollar swap 14.75 0.50

spread

U.S. 5-year dollar swap 2.25 0.50

spread

U.S. 10-year dollar swap -16.50 0.75

spread

U.S. 30-year dollar swap -56.25 1.00

spread

(Editing by Nick Zieminski and Dan Grebler)