TREASURIES-Treasury yields higher after Fed meeting statement

    (Recasts with Fed meeting statement, new throughout)
    By Karen Brettell
    NEW YORK, July 28 (Reuters) - U.S. Treasury yields edged
higher in choppy trading on Wednesday after the Federal Reserve
said that the U.S. economic recovery remains on track despite a
rise in coronavirus infections and flagged ongoing discussions
around the eventual withdrawal of monetary policy support.
    "With progress on vaccinations and strong policy support,
indicators of economic activity and employment have continued to
strengthen," the U.S. central bank said in a statement after the
conclusion of its latest two-day policy meeting.
    "The FOMC statement shows the Fed is on track to execute on
the consensus tapering timeline," Ian Lyngen, head of U.S. rates
strategy at BMO Capital Markets, said in a report.
    Benchmark 10-year yields were last 1.261%. The
yields briefly rose to a session high of 1.278% immediately
after the statement.
    Fed Chair Jerome Powell will elaborate on the latest policy
statement in a news conference at 2:30 p.m. EDT (1830 GMT)
    The Fed also announced that it will establish two standing
repo facilities, one domestic and one for foreign and
international monetary authorities, to backstop money markets
during times of stress.

      July 28 Wednesday 2:18PM New York / 1818 GMT
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.05         0.0507    0.000
 Six-month bills               0.05         0.0507    0.000
 Two-year note                 99-211/256   0.2134    0.010
 Three-year note               99-250/256   0.3829    0.021
 Five-year note                99-112/256   0.7399    0.030
 Seven-year note               101-136/256  1.0203    0.028
 10-year note                  103-88/256   1.261     0.027
 20-year bond                  106-240/256  1.8306    0.027
 30-year bond                  110-136/256  1.9098    0.021

   DOLLAR SWAP SPREADS
                               Last (bps)   Net
                                            Change
                                            (bps)
 U.S. 2-year dollar swap         7.50         0.50
 spread
 U.S. 3-year dollar swap        11.50         0.75
 spread
 U.S. 5-year dollar swap         8.25        -0.25
 spread
 U.S. 10-year dollar swap        2.00         1.75
 spread
 U.S. 30-year dollar swap      -25.75         2.00
 spread




 (Editing by Sandra Maler)

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