TREASURIES OUTLOOK-Yields fall as tumbling stocks prompt safety buying

* Falling stocks boost demand for Treasuries

* NY Fed's Williams affirms further gradual rate hikes

* Bond market closed Thursday for U.S. Thanksgiving holiday

By Karen Brettell

NEW YORK, Nov 19 (Reuters) - U.S. Treasury yields fell to

six-week lows on Monday as stocks fell, boosting demand for

low-risk U.S. government debt.

Major stock indexes slid 2 percent as a slump in Apple (Swiss: AAPL-EUR.SW - news)

shares battered the technology sector while conflicting

signals over the state of play between the United States and

China on their trade dispute kept investors on edge.

Benchmark 10-year notes gained 6/32 in price to

yield 3.054 percent, the lowest since Oct (Shenzhen: 000069.SZ - news) . 3 and down from 3.074

percent on Friday.

"The yields are lower today because of the stock market,"

said Lou Brien, a market strategist at DRW Trading in Chicago.

Comments by New York Fed President John Williams on Monday

that the U.S. central bank is pushing ahead with gradual

rate-hike plans next month as it marches toward a more normal

policy stance may have added pressure to stocks.

Some investors questioned whether the Fed will be able to

continue raising rates, possibly harming economic growth.

Williams' comments "probably helped push the stocks down to

a new leg because the comments by Clarida last week, although

hardly definitive, were adding a little bit more uncertainty to

the path of policy," Brien said.

Richard Clarida, the Fed's newly appointed vice chair, said

on Friday that U.S. interest rates are nearing Fed estimates of

a neutral rate, which "makes sense."

"The market's interpretations of those comments were very

dovish," said Thomas Simons, a money market economist at

Jefferies in New York.

Fed Chairman Jerome Powell said last Wednesday that a

"really strong" U.S. economy is likely to continue growing, but

softness in housing and high levels of corporate debt have

caught the Federal Reserve's eye.

The bond market will be closed on Thursday for the

Thanksgiving holiday, and will close early on Friday.

(Editing by Jeffrey Benkoe)