TREASURIES-U.S. bond prices fall ahead of auctions

* Yield curve steeper ahead of supply of 3s, 10s, 30s

* Global stocks move higher as debt fears ease

* With light economic data, supply is focus, traders say

By Emily Flitter

NEW YORK, March 8 (Reuters) - The prices of U.S. government securities fell on Monday as investors prepared to absorb $154 billion in bills and coupons scheduled to be auctioned this week.

The yield curve steepened, with prices of longer-dated bonds and notes falling farthest ahead of auctions of three-year and reopened 10-year notes and reopened 30-year bonds, totalling $74 billion, the first of which will take place on Tuesday. Treasury is also set to auction $80 billion of bills starting Monday.

Analysts said a lack of significant economic data and relative political quiet helped train the market's focus to the coming supply.

"When you have a light economic news week, supply takes center stage," said Raymond Remy, the U.S. head of fixed income at Daiwa Securities in New York.

Benchmark 10-year notes US10YT=RR traded 8/32 lower in price to yield 3.72 percent, up from a close of 3.69 on Friday.

Thirty-year bonds US30YT=RR were down 13/32 in price to yield 4.67 percent, up from 4.65 percent on Friday.

Markets opened to relative political calm on Monday, with worries over a Greek debt crisis subsiding. A spokesman for the European Union said on Monday that the EU was considering forming a rescue fund to prevent future crises within the eurozone. For more, click on [ID:nLDE62715V]

"I think there's some positive feelings about what's going on in Europe," said John Spinello, U.S. Treasury bond strategist at Jefferies & Co. in New York.

Capitol Hill was also quieter on Monday following a week of tumult over competing plans for financial regulatory reform.

"I'm trying to find the Barney Frank comments from Friday concerning GSEs," Remy said, referring to a statement by the the chairman of the House Financial Services Committee warning Fannie Mae and Freddie Mac bondholders that the securities would not have the same guarantee against losses that U.S. Treasuries carry.

Frank distanced himself from the idea after the Treasury Department reiterated its commitment to supporting the government-sponsored enterprises, but traders remained on watch.

"If he comes out and talks more about that, there's a chance he could have an impact (on the market)," Remy said.

Analysts said fresh expectations for an economic recovery added to pressure on Treasury prices. The U.S. Department of Labor reported on Friday that the country had shed 36,000 jobs in February. Economists had predicted larger drop.

"I think there is a feeling that the economy is starting to gain some traction; the job market has probably bottomed out," Spinello said.

Two-year notes US2YT=RR were trading 1/32 lower in price to yield 0.92 percent, up from 0.90 percent on Friday, while five-year Treasury notes US5YT=RR were 4/32 lower to yield 2.37 percent from 2.34 percent on Friday. (Editing by Chizu Nomiyama)