TREASURIES-U.S. bond prices rise on Turkey-Russia tension

* Turkey downing Russian warplane spurs safety bids for bonds

* U.S (Other OTC: UBGXF - news) . seen selling 5-year notes at highest yield since June

* U.S. GDP, home price data support rate-hike view in December (Updates market action, adds quote)

By Richard Leong

NEW YORK, Nov 24 (Reuters) - U.S. Treasuries prices rose on Tuesday, with the 30-year yield hovering near 3 percent after Turkey's downing of a Russian warplane stoked safe-haven demand for low-risk government debt.

The bond market's gains were limited by encouraging domestic data that supported the view the U.S. Federal Reserve will raise interest rates in December.

Bond prices retreated from their initial highs as U.S. oil futures jumped more than 3 percent on worries that an escalation in tensions between Turkey and Russia would disrupt crude exports from the Middle East.

Analysts and traders expect the tension between the two nations will likely remain contained for now.

"It (Other OTC: ITGL - news) 's more of a one-off situation. I don't think either side wants to expand this," Milstein said Larry Milstein, head of U.S. government and agency trading at R.W. Pressprich & Co. in New York.

Tuesday's safety bids for Treasuries came ahead of a $35 billion auction of five-year government debt at 1 p.m. (1800 GMT).

Monday's $26 billion of two-year note supply fetched solid investor demand.

The Treasury will complete this week's auction with a $29 billion sale of seven-year notes.

In early trading, benchmark 10-year Treasuries notes were up 3/32 in price to yield 2.239 percent, down 1 basis point from late on Monday.

Ten-year note prices were up as much 12/32 prior to release of the government's second reading of gross domestic product in the third quarter and S&P/Case-Shiller's report on U.S. home prices in September.

The Commerce Department said U.S. GDP grew at a 2.1 percent annual pace in the quarter, faster than the 1.5 percent rate it reported last month.

S&P/Case-Shiller's index of 20 metropolitan areas gained 5.5 percent in September on a year-over-year basis, stronger than an estimated 5.1 percent increase in a Reuters poll of economists.

The encouraging data was undercut by a surprise drop in the Conference Board's index on U.S. consumer confidence in November to its lowest level since September 2014.

In the "when-issued" market, traders expect the latest five-year Treasuries supply to sell at a yield of 1.670 percent, which would be the highest since June.

The U.S. bond market will close on Thursday for the U.S. Thanksgiving holiday and will shut early at 2 p.m. (1900 GMT) on Friday.

(Reporting by Richard Leong; Editing by Dan Grebler)