NEW YORK, Aug 13 (Reuters) - U.S. Treasury yields fell

further on Thursday after data showed producer prices in July

rose moderately, but were generally in line with market

forecasts, paring back expectations that the Federal Reserve

will raise interest rates at its policy meeting next month.

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

interest rate moves, fell 3.4 basis points (bps) to 4.163%

, compared with 4.182% before the data. The benchmark

10-year yield slid 2.9 bps to 4.662%. It was 4.672%

before the data release.