* Bond prices fall as stocks regain bid * Hopes on fiscal cliff increase risk taking, reduce bond demand * Volumes light ahead of Thanksgiving holiday By Karen Brettell NEW YORK, Nov 19 U.S. bond prices fell on Monday as signs of progress in talks to resolve a fiscal crunch caused by large, automatic budget cuts and tax hikes boosted demand for riskier assets, including stocks, and made safe haven bonds relatively less attractive. In the past two weeks Treasuries yields have fallen to two-month lows as investors flee stocks on concerns that U.S. lawmakers will fail to reach a deal to resolve the $600 billion "fiscal cliff," which would significantly dampen economic growth. Stocks investors appeared more confident on Monday, however, after leading Republican and Democrat lawmakers expressed confidence on Sunday that they could reach a deal, even as they stuck to their positions. "There have been signs of life. I think the big possibility to watch for is how much of a recovery we can create in equities, and then how long that holds," said Jim Vogel, interest rate strategist at FTN Financial in Memphis, Tennessee. Bonds are largely taking their cues from other markets as investors wait on new information relating to the any economic effect of recent storm Sandy, the resolution of the fiscal cliff and before the Federal Reserve's next policy meeting in December. "There's no fundamental bond story at the moment that can be aggressively traded, which leaves us to react to other markets," Vogel said. Trading volumes are also expected to be light this week with no important economic releases due and before the U.S. Thanksgiving holiday on Thursday. Benchmark 10-year Treasuries were last down 9/32 in price to yield 1.61 percent, up from 1.58 percent on Friday. The yields have fallen from 1.75 percent on Nov. 6. Thirty-year bonds fell 21/32 in price to yield 2.76 percent, up from 2.73 percent late on Friday.