TREASURIES-Prices rise as risk appetite slides with weak stocks, oil

* Ten-year yields could fall to 1.15 to 1.10 percent range

-SocGen (Paris: FR0000130809 - news)

* U.S (Other OTC: UBGXF - news) . yields edge higher after upbeat U.S. housing starts

(Adds comment, updates prices)

By Gertrude Chavez-Dreyfuss

NEW YORK, July 19 (Reuters) - U.S. Treasury debt prices

gained on Tuesday as risk appetite waned following declines in

stocks, hurt by the drop in oil prices as well as soft consumer

sentiment data in Germany.

Yields on U.S. 10-year notes and 30-year bonds fell as a

result after three days of gains, while those on the short end

of the curve were mixed.

A coup attempt may have been averted in Turkey, but the

ramifications, including a purge of thousands of civil servants

and military personnel and its impact on overall global

sentiment, have prompted investors to get off risky holdings and

turn to the safest of assets, analysts said.

"The market was complacent about Turkey and so we had some

sell-off yesterday," said Jim Vogel, interest rates strategist

at FTN Financial in Memphis.

He added that investors are realizing that there are still

several unknowns in the global economic and political arena and

these worries have prompted a move back to sovereigns, including

Treasuries.

U.S. stocks were mostly lower on Tuesday, in line

with overall weakness in global equities. Global bond yields

were also lower in general, with German 10-year bunds

at -0.090 percent.

Treasury yields, which move inversely to prices, did inch

higher after data showed U.S. housing starts rose more than

expected in June, while building permits increased 1.5 percent

last month.

"U.S. data since the non-farm payrolls report for June has

been better than expected and so that has resulted in slightly

higher yields," said Bruno Braizinha, interest rates strategist

at Societe Generale (Swiss: 519928.SW - news) in New York.

"But this overwhelming demand for Treasuries is sure to keep

yields even lower," he added.

Demand for Treasuries in almost all auctions and in the

secondary market has been robust given negative yields in major

economies such as Japan and Germany, analysts said.

Societe Generale, in a recent research note, suggested that

given investors' healthy appetite for Treasuries, it estimated

that U.S. 10-year yields could fall to the 1.15 to 1.10 percent

range.

FTN's Vogel said once the bulk of the U.S. corporate bond

supply and the global or U.S. economy gets hit with negative

surprises in August, he could see 10-year yields hitting 1.25

percent.

In late trading, benchmark U.S. 10-year Treasury notes

were up 8/32 in price for a yield of 1.557 percent,

down from 1.587 percent late on Monday.

U.S. 30-year bond prices were higher as well,

up 19/32 in price, yielding 2.2746 percent, down from 2.302

percent late Monday.

U.S. two-year notes were little changed in

price, with a yield of 0.693 percent, while U.S. five-year notes

were up 3/32 in price, yielding 1.11 percent.

July 19 Tuesday 3:09PM New York / 1909 GMT

Price

US T BONDS SEP6 172-7/32 0.65625

10YR TNotes SEP6 132-64/256 0.21875

Price Current Net Change

Yield % (bps)

Three-month bills 0.32 0.3247 -0.002

Six-month bills 0.425 0.4318 -0.005

Two-year note 99-222/256 0.6938 0.004

Three-year note 99-196/256 0.8296 -0.013

Five-year note 100-14/256 1.1136 -0.016

Seven-year note 99-252/256 1.3773 -0.026

10-year note 100-156/256 1.5578 -0.029

30-year bond 104-224/256 2.2739 -0.028

DOLLAR SWAP SPREADS

Last (bps) Net Change

(bps)

U.S. 2-year dollar swap 20.75 0.00

spread

U.S. 3-year dollar swap 13.75 1.00

spread

U.S. 5-year dollar swap -1.00 1.25

spread

U.S. 10-year dollar swap -13.50 1.25

spread

U.S. 30-year dollar swap -44.75 1.00

spread

(Reporting by Gertrude Chavez-Dreyfuss; Editing by James

Dalgleish and Alan Crosby)