TREASURIES-Prices fall before three-year note sale

* Prices dip, capping two days of gains

* Treasury to sell $30 bln 3-year notes

* Fed to buy $0.75 bln-$1 bln in TIPS

By Karen Brettell

NEW YORK (Frankfurt: HX6.F - news) , April 8 (Reuters) - U.S. Treasuries prices dipped

on Tuesday ahead of a $30 billion three-year note sale, the

first of $64 billion in new coupon-bearing supply this week.

The price drop capped two days of strong gains after some

investors were disappointed by Friday's employment report for

March.

U.S. employers added 192,000 jobs and ramped up the hours

their workers put in on the job, though investors reduced bets

that the growth reflects an economy robust enough for the

Federal Reserve to hike interest rates in the spring of 2015.

Yields rose back from one-week lows on Tuesday as investors

turned their attention to the impending supply, and considered

whether the yields would be attractive enough in the auctions

after the recent rally.

"We're probably trying to make some sort of concession,

we've had a decent run-up since payrolls," said Sean Murphy, a

Treasuries trader at Societe Generale (Paris: FR0000130809 - news) in New York.

The Treasury will also sell $21 billion in 10-year notes on

Wednesday and $13 billion in 30-year bonds on Thursday.

Traders expect the new three-year notes will price at yields

of 0.91 percent, around 5 basis points higher

than where the debt is trading in the secondary market.

Benchmark 10-year notes were last down 2/32 in

price to yield 2.72 percent, up from 2.70 percent late on

Monday. Thirty-year bonds fell 5/32 in price to

yield 3.57 percent, up from 3.56 percent.

The Fed will buy between 0.75 billion and $1 billion in

Treasury Inflation-Protected Securities (TIPS) due between 2018

and 2044 on Tuesday as part of its ongoing purchase program.

(Editing by Meredith Mazzilli)