TREASURIES-Bonds fall on poorly received 30-year note sale

* 30-year bond auction met with weak demand

* Three other coupon auctions this week were successful

* Weekly jobless claims fall to a nine-month low (Adds analysts' quotes, updates prices)

By Chris Reese

NEW YORK, Oct 8 (Reuters) - U.S. Treasury debt prices fell on Thursday, with the 30-year bond losing over a full point, after weak demand in an auction of the securities stoked fears of a waning appetite for the huge supplies of government debt.

Demand for the $12 billion of reopened 30-year notes was below average, and the high yield in the sale was above expectations, indicating dealers were aggressive in trying to bid down the price.

"Treasuries have cheapened -- taking their direction from the soft auction," said Ian Lyngen, senior government bond strategist with CRT Capital Markets in Stamford, Connecticut.

The 30-year bond US30YT=RR was trading 1-4/32 lower in price to yield 4.07 percent, up from 4.01 percent late on Wednesday. Treasuries prices move inversely to yields.

The auction of longer-dated bonds was the only one to fare poorly in the four sales this week, which totaled $78 billion of coupon debt.

The selling lifted 30-year yields further from the five-month low of 3.89 percent hit late last week, reached after the government's monthly employment report showed far more jobs were lost in September than expected.

"Demand was not only weak (in Thursday's debt sale) but investors pushed for a 4 percent handle on rate in order to clear this auction," said George Goncalves, head of fixed income strategy at Cantor Fitzgerald in New York.

Longer-dated Treasuries had traded higher in price on Thursday morning, with investors wary of selling, or going short, ahead of the offering in light of the three previous successful sales this week.

Following the auction though, benchmark 10-year Treasury notes US10YT=RR were trading with a yield of 3.24 percent, up from a high yield of 3.21 percent in an auction of $20 billion of reopened 10-year notes on Wednesday.

Two-year notes US2YT=RR were trading 2/32 lower in price to yield 0.90 percent, up from 0.87 percent late on Wednesday.

Data early in the day showed a surprisingly big fall in weekly claims for jobless benefits.

The number of U.S. workers filing new claims for jobless insurance fell to a nine-month low last week, helping stocks, which were also boosted on earnings optimism. See [ID:nN08515146] for more on data and [.N] for the latest on stocks. (Additional reporting by Burton Frierson: Editing by Diane Craft)