TREASURIES-Bond prices little changed, watching stocks

NEW YORK, May 12 (Reuters) - Treasury debt prices were little changed early on Monday, as U.S. stock index futures rose on a firmer dollar and slipping crude oil, constraining the safe-haven appeal of government debt.

Treasuries remained within their recent ranges ahead of this week's stream of Federal Reserve speakers and key U.S. economic reports on retail sales, inflation, housing and jobless claims.

"Right now we are in a holding pattern and trading off equities," said William Larkin, portfolio manager with Cabot Money Management in Salem, Massachusetts.

"The oil situation is inflationary but it is also an economic drag," Larkin said. For now, prices of fixed-income securities with longer maturity are weathering worries about inflation because of U.S. economic weakness, but Larkin warns that yields may spike over the next year or two if global food and energy prices stay high.

The 2-year Treasury note's yield, which responds closely to expectations for official interest rate changes, traded within its past three-weeks' range between about 2.10 percent and 2.55 percent, above the 2 percent fed funds target rate, the key short-term lending rate which the Federal Reserve sets.

The 2-year Treasury note's price, which moves inversely to its yield, was down 2/32 for a yield of 2.27 percent <US2YT=RR>, versus 2.24 percent late Friday.

Fed Chairman Ben Bernanke is scheduled to speak on Tuesday about the central bank's measures to aid the banking system's liquidity. Bond market participants will listen closely for confirmation of the market's view that the Federal Reserve has now paused its eight month rate-cutting campaign. Some expect the U.S. central bank may be forced to start raising rates as soon as year end, under pressure from persistent inflation pressures.

The benchmark 10-year Treasury note's price, which moves inversely to its yield, traded up 1/32 for a yield of 3.77 percent <US10YT=RR>, versus 3.78 percent late Friday.

Treasury prices had edged higher on Friday, drawing support from news late on Thursday that American International Group, the world's largest insurer, posted a record $7.8 billion quarterly loss.