TREASURIES-U.S. bond prices dip on incoming supply, profit-taking

* Volume low ahead of U.S. Thanksgiving holiday

* Treasury to sell $28 bln in two-year notes

By Sam Forgione

NEW YORK, Nov 24 (Reuters) - Prices of U.S. Treasuries edged lower on Monday on modest selling pressure, with long-dated prices dipping the most, ahead of this week's incoming supply of U.S. government debt and profit-taking ahead of the U.S. Thanksgiving holiday.

Analysts said traders sold some U.S. government debt in anticipation of buying it back more cheaply. The U.S. Treasury will sell $28 billion in two-year notes, $13 billion in two-year floating rate notes, $35 billion in five-year notes and $29 billion in seven-year notes.

Traders sold fewer shorter-dated Treasury notes than 30-year Treasury bonds since they had become less sensitive to signs of when the Federal Reserve will raise interest rates, said Charles Comiskey, head of Treasuries trading at Bank of Nova Scotia in New York.

"People are still hiding in the front end," Comiskey said. "They want to see action from the Fed, and who knows when that's going to happen."

The minor selling pressure on shorter-dated Treasury notes occurred despite the Treasury's first auction of two-year notes at 1 p.m. EST (Other OTC: ECPCY - news) (1800 GMT).

Traders also took profits on last Friday's gains in U.S. Treasury prices, said Sharon Stark, fixed income strategist at DA Davidson in St. Petersburg, Florida. Prices rose on Friday on signals of more easing from the European Central Bank and a surprise rate cut from China.

Analysts said low volume in the U.S. bond market ahead of Thursday's holiday and Friday's early close kept trading muted.

Benchmark 10-year U.S. Treasury notes were last down 4/32 in price to yield 2.33 percent, from a yield of 2.32 percent late on Friday. U.S. 30-year Treasury bonds were last down 11/32 to yield 3.04 percent, from a yield of 3.02 percent from late on Friday.

U.S. two-year note prices were last down 1/32 in price to yield 0.52 percent, from a yield of 0.51 percent late on Friday.

Strength in U.S. and international stocks weighed on safe-haven U.S. Treasuries prices, analysts said. Major U.S. indexes hit fresh records, with the benchmark S&P 500 last up 0.22 percent. (Reporting by Sam Forgione; Editing by Paul Simao)