TREASURIES-Bonds turn negative after $39 bln 5-yr debt sale

NEW YORK, July 29 (Reuters) - U.S. Treauries turned negative on Wednesday, wiping out earlier gains after weak demand at a record $39 billion auction of five-year notes raised worries about appetite for U.S. government debt.

In the open market, the price of five-year Treasury debt US5YT=RR was down 10/32, compared with being 1/32 higher shortly before the Treasury Department announced the results of the five-year sale.

The five-year yield, which moves inversely to price, was 2.67 percent, compared with 2.60 percent prior to the auction results and late Tuesday.

Benchmark 10-year notes US10YT=RR was down 1/32, compared with a 11/32 gain shortly before the auction results. Their yield was 3.70 percent, versus 3.65 percent prior to the results and 3.69 percent late on Tuesday.

(Reporting by Richard Leong)