NEW YORK, Aug 12 (Reuters) - U.S. Treasury yields extended

their declines on Wednesday after data showed consumer prices

for July rose modestly, broadly in line with market forecasts,

reducing expectations that the Federal Reserve will raise

interest rates at its next policy meeting next month.

U.S. two-year yields, which are sensitive to the outlook for

interest rate moves, fell 4.2 basis points (bps) to 4.176%

. The benchmark 10-year yield slid 3.2 bps to 4.652%

.