TREASURIES-Bonds climb as lower stocks boost safe-haven bid

* Jobs, manufacturing data also support bonds

* Fed buys $7.5 billion of Treasuries

* Bernanke says rising debt boosting interest rates (Updates prices)

By Chris Reese

NEW YORK, June 3 (Reuters) - U.S. Treasuries climbed on Wednesday as a decline in stocks bolstered the safe-haven bid for government debt and as the Federal Reserve bought Treasury coupons.

Bonds were also supported by U.S. data on jobs and manufacturing that left some analysts wondering whether the road to economic recovery was longer than expected.

"People are booking profits (in stocks and commodities) and going into safe havens," said David Dietze, chief investment strategist at Point View Financial Services in Summit, New Jersey.

Benchmark 10-year Treasury notes US10YT=RR were trading 18/32 higher in price for a yield of 3.55 percent, down from 3.62 percent late on Tuesday, while 30-year bonds US30YT=RR were also 20/32 higher for a yield of 4.45 percent from 4.49 percent.

The Fed bought $7.5 billion of Treasuries on Wednesday and will again buy debt on Thursday as part of a program to free up lending and lower longer-term interest rates, such as those on mortgages.

To date, the Fed has bought about $138 billion of Treasuries, or about 46 percent of the $300 billion the central bank has said it would purchase over a six-month period. For details see [ID:nN0369185].

Fed Chairman Ben Bernanke in testimony to Congress on Wednesday gave no indication whether the purchase program would be expanded, as some analysts expect.

Bernanke did warn that rising U.S. debt is contributing to a spike in longer-term interest rates and that now is the time to start working on reining in deficits. [ID:nN03107471]

Bonds briefly extended gains after data from the Institute for Supply Management showed a deeper-than-forecast contraction in the services sector in May, though the index did rise from April. [ID:nN03345672]

"It is beginning to move into territory that is less of a contraction than we've seen, but it's still not at a point that is indicating robust economic growth," said Dan Greenhaus, analyst at Miller, Tabak & Co in New York.

Bonds also extended gains on Wednesday morning after ADP Employer Services said U.S. private employers shed 532,000 jobs in May, which was above economists' forecasts for 520,000 job losses. ADP revised higher the number lost in April.

The higher-than-expected job loss and the revision caused some analysts to think risks may be skewed to the high side when it comes to job losses in the May U.S. payrolls and unemployment report from the government to be released on Friday.

The median of forecasts from economists polled by Reuters is for May nonfarm payrolls to have contracted by 520,000 after a contraction of 635,000 jobs in April. (Additional reporting by Mary Angela Rowe and Ryan Vlastelica; Editing by Leslie Adler)