* Bonds advance as stock slide revives bid

* Risk-averse investors seek safe-haven U.S. debt

* Lockhart says Fed could buy long-term securities (Adds analyst comments, updates prices)

By Pedro Nicolaci da Costa

NEW YORK, Jan 12 (Reuters) - U.S. Treasury bond prices rose sharply on Monday as a deepening downturn in stocks revived interest in safe-haven debt.

Equity markets were being dragged lower by nervousness surrounding financial firms, whom many believe will face additional losses, and worries that earnings out this week might be on the weak side of already depressed forecasts.

A further boon to bonds, Atlanta Federal Reserve President Dennis Lockhart said the central bank could keep rates at very low levels for some time and might also resort to other tools like printing more money and buying up long-term securities.

Benchmark 10-year notes US10YT=RR climbed 26/32 and were offering a yield of 2.31 percent, down nine basis points from Friday.

"Financial stocks are getting crushed, bonds are catching a bid," said Andrew Brenner, senior vice-president at MF Global.