TREASURIES-Prices climb into plus column as stocks sink

* Prices climb as sinking stocks revive safety bid

* $94 bln in notes to be sold this week

* Demand for safe-haven assets outweighs supply concerns (Adds fresh comment, updates prices)

NEW YORK, Feb 23 - U.S. Treasuries prices clambered higher on Monday as sinking stocks revived investors' appetite for safe-haven U.S. government debt.

Any concern that demand might be less than robust for this week's Treasury auctions of two-, five- and seven-year notes -- totaling $94 billion in securities -- eased in the face of investors' persistent preference for the least-risky assets.

"The Treasury's refinancing auctions earlier this month went off without a hitch," said Thomas Higgins, chief economist at Payden & Rygel in Los Angeles. "People act as if supply matters. Why does it matter when there's ample demand for risk-free assets?"

The equities market, which rose early in the session, drove Treasuries, said John Canavan, analyst at Stone & McCarthy Research Associates.

"Stocks failed to hold the bid after the cash market opened here in the U.S. so Treasuries worked their way off the lows," he said.

In early afternoon trade, the benchmark 10-year Treasury note US10YT=RR was up 7/32, its yield easing to 2.77 percent from 2.80 percent on Friday.

Two-year Treasury notes rose 1/32, their yields easing to 0.95 percent US2YT=RR from 0.97 percent on Friday.

The Treasury will sell $94 billion in Treasury securities this week: $40 billion in two-year notes on Tuesday, $32 billion in five-year notes on Wednesday, and $22 billion in seven-year notes on Thursday. It will be the first time that the Treasury has sold seven-year notes since 1993.

The market's ability to absorb $40 billion in two-year notes was proven in January, so an additional $2 billion of five-year notes, to be sold on Wednesday, should not be a major obstacle for the five-year sector, said David Ader, head of government bond strategy at RBS Greenwich Capital.

"It's the reintroduction of the 7-year that we expect to be the largest risk for this series of auctions," he said.

The size of the seven-year auction could "test the recent ease of takedowns," Ader said.