TREASURIES-Bonds rise on stock losses, weak factory data

* Wall Street loss, weak factory data revive safety bids

* ADP says U.S. private payrolls fall more than expected

* U.S. Q2 GDP contracts slower than previously reported

* Fed's Lockhart says too early to end financial support (Updates market action, adds quote)

By Richard Leong

NEW YORK, Sept 30 (Reuters) - U.S. Treasury prices rose on Wednesday as stock market losses and weak regional factory data revived a safe-haven bid for government debt and hopes the Federal Reserve will refrain from raising rates any time soon.

The view on rates was also supported by a report showing a steeper-than-expected loss in private-sector U.S. jobs in September. It reinforced the notion the vast U.S. consumer sector will remain sluggish even as the economy emerges from the worst downtown since the 1930s.

Bonds rebounded from session lows hit after the government said the economy contracted at a slower pace in the second quarter than it had reported previously.

U.S. Midwest manufacturing data from the Institute for Supply Management-Chicago "magnified the Dow losses and that put a bid to the bond market," said Chris Rupkey, chief financial economist at the Bank of Tokyo/Mitsubishi UFJ in New York For more, please see: [ID:nN3095624].

Benchmark 10-year Treasury notes US10YT=RR were up 1/32 in price at 102-24/32, rebounding from a session low of 102-15/32. The yield, which moves inversely to their price, was 3.30 percent, flat from late Tuesday.

The 10-year yield, which is hovering near its lowest level since mid-July, is poised to record its first quarterly drop since the fourth quarter of 2008.

The Dow Jones industrial average and other major U.S. stock indexes fell after the unexpectedly weak data from ISM-Chicago. For the latest stock report, see [.N]

MIXED DATA BEFORE PAYROLLS

The day's mixed bag of data precedes Friday's non-farm payroll report, the month's most important data, amid increased chatters on how soon the Federal Reserve would end its financial support as the economy recovers.

Atlanta Fed President Dennis Lockhart said it is too early to embark on a full-on exit from the central bank's accommodative policies that were adopted to combat last year's credit crisis. For more, see [ID:nNAT007113]

Lockhart, who is a voter on the Fed's policy-setting group this year, added that the U.S. economy is improving but that it is too early to determine whether a recovery is on track.

Earlier, the government revised its final figure on second-quarter Gross Domestic Product to minus 0.7 percent from an earlier reading of minus 1.0 percent. For more, see [ID:nCAT002865]

On balance, the latest batch of data supports the perception the worst is over but that key economic sectors like jobs and manufacturing remain fragile.

Another report added to the doubts of a speedy recovery. ADP Employer Services and Macroeconomic Advisers LLC said U.S. companies shed 254,000 jobs in September, compared with a revised 277,000 decline in August and a forecast drop of 210,000. For more, see [ID:nWEN4178] (Additional reporting by Ellen Freilich; Editing by Dan Grebler)