TREASURIES-Bonds pare losses in mortgage-related buying

NEW YORK, Sept 8 (Reuters) - U.S. Treasury debt prices pared early losses on Monday with some mortgage-related buying of longer-dated issues after the government's weekend announcement it was taking over Fannie Mae (FNM.N) and Freddie Mac (FRE.N).

Benchmark 10-year Treasury notes US10YT=RR were trading 6/32 lower in price for a yield of 3.73 percent from 3.71 percent late on Friday. Two-year notes US2YT=RR were 4/32 lower for a yield of 2.39 percent from 2.32 percent. (Reporting by Chris Reese; Editing by Chizu Nomiyama)