NEW YORK, July 11 (Reuters) - U.S. Treasury yields fell

on Thursday after data showed consumer prices in the world's

largest economy slipped last month, reinforcing expectations

that the Federal Reserve will start cutting interest rates in

September.

The consumer price index dipped 0.1% last month after being

unchanged in May, the Labor Department's Bureau of Labor

Statistics said on Thursday. In the 12 months through June, the

CPI climbed 3.0% and followed a 3.3% advance in May.

The benchmark 10-year yield was last down 8.7 basis points

(bps) at 4.190%, while the two-year yield dropped

12.2 bps to 4.508%.