March 19 (Reuters) - U.S. Treasury yields ticked down on

Tuesday from their near-February highs, as traders look ahead to

the Federal Reserve's press conference on Wednesday for signs of

its interest rate path for the rest of the year.

Benchmark 10-year notes' yields fell to 4.312%,

from their close of 4.340% on Monday. Yields had approached

their February high of 4.354% on Monday.

Two-year yields ticked down to 4.697%, declining

from their Monday close of 4.736%.

The inversion in the yield curve between two-year and

10-year notes narrowed by 2 basis points to minus

39 basis points.

The market's attention is on the Fed's two-day meeting

beginning Tuesday, with its press conference and interest rate

decision for this month on Wednesday. The central bank is

expected to hold rates steady, but traders are paying close

attention to its economic and interest rate projections for the

remainder of the year.

Strong economic data reports last week, including the

consumer price index (CPI) and the producer price index (PPI)

for February exceeding forecasts, have raised questions among

traders about the widely expected June start to the Fed's rate

cuts. Nonetheless, the Fed's comments on Wednesday will hold

greater significance than the recent data for some traders.

"There's so much data, and especially this data at the

beginning of the year," said Michael Lorizio, senior fixed

income trader at Manulife Investment Management.

"And because economists with tremendous amounts of

experience and resources are saying there's so much seasonality

impacting these readings, I think we do need to see - and the

Fed rightfully deserves to see - where things are trending

before coming to any sort of major conclusions," he said.

Traders in Fed funds futures have increased their bets that

the Fed will cut rates by June to 62%, from 54% on Monday,

according to the CME Group's FedWatch tool.

The economic data calendar is light this week in lieu of the

Fed's two-day meeting. February housing starts and building

permits figures came in stronger than expected on Tuesday.

The U.S. Treasury Department on Tuesday will hold auctions

for $75 billion in 42-day bills, $46 billion in 52-week bills

and $13 billion in 20-year bonds.