TREASURIES-Prices rise as Fed's economic outlook sinks in

* Falling stocks boost longer-dated Treasuries

* Market jitters over France's finance help bonds

* Traders see Fed keeping rates on hold to mid-2013
(Updates throughout with quotes, details, prices)

By Emily Flitter

NEW YORK, Aug 10 (Reuters) - U.S. Treasury prices rose on
Wednesday as traders around the world lowered their
expectations for growth based on the Federal Reserve's latest
statement, as well as signs of sluggishness from other
economies.

Treasuries looked like a safer, more valuable bet the day
after the Federal Open Market Committee pledged to keep rates
exceptionally low through the first half of 2013, which most
economists took as an assurance that the Fed would not raise
rates at all during that time.

"What we've learned from the Fed and their announcement is
they're thinking things are pretty dire," said Scott Graham,
head of government bond trading at BMO Capital Markets in
Chicago.

"While the Fed action will benefit the stock market, we
still have continuing issues in Europe and slower growth in
China -- as you look around the world globally there's still
plenty to be concerned about," he said.

Stocks, which rose more than 400 points on Tuesday after
the FOMC statement, fell more than 2 percent each in the three
major indexes.

In contrast, the benchmark 10-year Treasury note
US10YT=RR was up 22/32 in price after briefly posting a full
point gain, its yield falling to 2.16 percent, down from 2.24
percent late on Tuesday.

"Stocks are making new lows on the day," said Todd Colvin,
a futures trader at MF Global in Chicago.

He also cited fear circulating in the markets that France
would lose its AAA sovereign rating, despite an announcement
from Moody's on Wednesday that France's rating outlook was
stable, and an assurance by Standard & Poor's earlier this week
that no ratings change for France was on the horizon.

The 30-year Treasury bond US30YT=RR was up 1-17/32 in
price to yield 3.55 percent, down from 3.68 percent at
Tuesday's close. The bond was briefly trading a full two points
higher in price.

The Treasury Department is set to sell $24 billion in
10-year notes at 1 p.m. (1700 GMT).
(Editing by Chizu Nomiyama )