NEW YORK, Nov 5 (Reuters) - U.S. Treasuries erased modest gains and turned lower on news that new U.S. claims for jobless benefits fell in the latest week.

Stocks responded positively to the news and that, too, depleted the bid for safe-haven U.S. government debt as investors showed a willingness to shoulder riskier assets.

Benchmark 10-year notes US10YT=RR, up 2/32 in price before the report, were down 4/32 afterwards. Their yields rose to 3.54 percent from 3.53 percent late on Wednesday.

The Labor Department said U.S. new jobless claims fell 20,000 last week to a seasonally adjusted 512,000 in the week ended Oct. 31, the lowest since early January. Still, analysts say new claims need to drop below 400,000 to signal that the economy is creating jobs.