TREASURIES-Prices fall as French election outcome eases uncertainty

(Changes 10-year note price direction to down from up in

paragraph 7, and 30-year bond price direction to down from up in

paragraph 9)

By Gertrude Chavez-Dreyfuss

NEW YORK, April 24 (Reuters) - U.S. Treasury prices fell on

Monday after centrist Emmanuel Macron's victory in the first

round of France's presidential race meant the country would stay

in the European Union and preserve the euro, fueling a selloff

of safe-haven assets.

Overall yields, which move inversely to prices, rose to

two-week highs as result of Macron's win.

The French election result was viewed as positive for

Europe, reducing the risk of an anti-establishment scare

similar in scale to that of Britain's vote to quit the EU and

the election of Donald Trump as U.S. president in November.

Ahead of the election, Treasury prices had rallied as

investors sought protection against a potentially destabilizing

outcome.

"A Macron victory derails a negative scenario, which means

that we won't see a threat to the euro or the European Union,"

said Bruno Braixinha, interest rates strategist, at Societe

Generale in New York.

"Macron also translates to a different type politics in

France because he doesn't come from the two main parties. So the

expectation is that he will be able to jumpstart the French

economy," he added.

In mid-morning trading, benchmark 10-year notes

were down 15/32 in price to yield 2.289 percent, from 2.236

percent. Yields hit a two-week peak of 2.325 percent earlier in

the aftermath of the French election outcome.

The 10-year yield briefly dipped to 2.165 percent last week,

the lowest since Nov. 10. The notes had struggled to hold below

strong technical resistance at yields of around 2.19 percent.

U.S. 30-year bond prices were down 26/32, yielding 2.935

percent , up from Friday's 2.894 percent.

Thirty-year yields earlier touched a two-week peak of 2.964

percent.

On the front-end of the curve, U.S. two-year yields were

also up at 1.241 percent , from 1.184 percent last

Friday.

Treasury supply is also in focus this week, with the auction

of $88 billion in two-year, five-year and seven-year notes.

Investors are also awaiting a tax plan announcement by

President Trump on Wednesday.

Last week, Trump promised a "big announcement" on

overhauling the U.S. tax code, a top campaign pledge. An

administration official said over the weekend the announcement

will consist of "broad principles and priorities."

(Editing by Bernadette Baum)