* Bonds gain on falling stocks, oil * Yield curve flattest in eight weeks * Bond market to close early on Friday By Karen Brettell NEW YORK, Nov 23 (Reuters) - Benchmark U.S. Treasury yields fell to eight-week lows on Friday and the yield curve flattened, as falling stock and oil prices increased safe haven buying of long-dated U.S. government bonds. U.S. stocks fell as oil prices hit their lowest in a year, while investors were nervous ahead of U.S.-China trade talks at the G20 summit next week. “We’re seeing a bit of a continuation to the destructive price action that we’ve seen in risk assets and oil, and that’s blown back to Treasuries,” said Mike Lorizio, head of Treasuries trading at Manulife Asset Management in Boston. Benchmark 10-year notes gained 8/32 in price to yield 3.034 percent, down from 3.061 percent on Wednesday and the lowest since Sept. 28. The bond market was closed on Thursday for the Thanksgiving holiday and will close early on Friday at 2:00 p.m. EST (1900 GMT). The 10-year Treasury yields have fallen from 3.25 percent on Nov. 7 as tumbling stock markets increased demand for low risk debt. Shorter-dated debt underperformed on Friday, however, as expectations of further rate hikes by the Federal Reserve kept pressure on the notes, which are highly sensitive to rate moves. Two-year note yields have fallen to 2.803 percent from 2.977 percent on Nov. 8 as falling stocks and weakening global growth raised some doubts that the U.S. central bank will be able to continue its rate hike cycle much further without damaging the economy. However, “the U.S. economy has not shown any signs of weakness or any signs of changing the current trajectory. With that in mind the front-end of the curve has probably gone about as far as it can,” said Lorizio. The yield curve between two-year and 10-year notes flattened to 22.60 basis points, the lowest level since Sept. 28. The Federal Reserve will release minutes from its November meeting on Wednesday. Futures traders are pricing in a 72 percent chance of a December rate hike, according to the CME Group’s FedWatch Tool. (Editing by Chizu Nomiyama) )