TREASURIES-Bonds trim losses after Fed buying

Wed May 27, 2009 11:13am EDT

(Updates with market reaction to latest round of Fed buying)

NEW YORK May 27 (Reuters) - U.S. Treasuries prices fell on Wednesday, sending yields to six-month highs, but pared their losses after the latest round of government debt buying by the Federal Reserve.

The benchmark 10-year Treasury note US10YT=RR was last down 3/32 in price on the day, yielding 3.56 percent versus 3.55 percent at Tuesday's close. Before the conclusion of the Fed operation, 10-year notes were down 6/32. (Reporting by Burton Frierson; Editing by James Dalgleish)

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