NEW YORK, Jan 15 (Reuters) - U.S. Treasury yields fell

on Wednesday after data showed headline inflation in the world's

largest economy rose marginally above forecasts in December,

while the core number came in as expected.

U.S. 10-year yields extended their fall after the data and

was last down 8.6 basis points (bps) at 4.702%.

The U.S. two-year yield, which reflects interest rate

expectations, dropped 8 bps to 4.287%.