(Updates after Fed rate announcement)

NEW YORK, Jan 29 (Reuters) - U.S. Treasury yields rose

on Wednesday after the Federal Reserve kept interest rates

steady and gave little insight into when further reductions in

borrowing costs may take place.

After several months in which inflation data have

largely moved sideways, the U.S. central bank dropped from its

latest policy statement language saying inflation "has made

progress" towards the Fed's 2% inflation goal, noting only the

pace of price increases "

remains elevated

."

The 2-year note yield, which typically moves in

step with Fed interest rate expectations, was last up 4.8 basis

points on the day at 4.255%.

Benchmark 10-year yields rose 3.6 basis

points to 4.585%.

The yield curve between two-year and 10-year yields

was at 33 basis points.