TREASURIES-Dip in Asia after 3-day rise, Fed eyed

TOKYO, June 24 (Reuters) - Longer-dated U.S. Treasuries edged down on Wednesday after three days of gains, as investors awaited a Federal Reserve announcement that was expected to signal continued low interest rates and steady government bond buying.

* The Fed began a two-day meeting on Tuesday and many market players expected the U.S. central bank to dampen expectations for interest rate hikes this year, while holding steady on its plans for asset purchases.[ID:nN2374785]

* Analysts said U.S. central bank officials may debate topics including an end to quantitative easing but would not make any hard decisions on it.

* "No significant changes are expected from the Fed this time," said Yasutoshi Nagai, chief economist for Daiwa Securities SMBC.

"Judging from the Fed's less upbeat Beige book report, the U.S. central bank is likely to keep a sober tone about the state of the economy -- which in turn could put downward pressure on Treasury yields, near 3.5 percent for the 10-year yield."

* A statement announcing the policy decision is expected around 1815 GMT on Wednesday. Economists widely expect the Fed to keep its target for the federal funds rate in the zero to 0.25 percent range set in December.

* The U.S. Treasury is set to auction $37 billion in five-year notes on Wednesday, just before the release of the statement from the Federal Open Market Committee.

* Exceptionally strong demand for the $40 billion issue of two-year notes on Tuesday, including a record indirect bid, indicated strong demand that is expected to carry over into the five-year bids -- despite this week's record $104 billion in Treasury supply. Another sale of $27 billion in seven-year notes is scheduled for Thursday.

* The benchmark 10-year notes were down 2/32 in price to yield 3.636 percent US10YT=RR, up about a basis point from late New York trade on Tuesday.

* The new two-year notes auctioned the previous day were little changed in price to yield 1.152 percent US2YT=RR. The 30-year bonds dipped 3/32 in price to yield 4.365 percent US30YT=RR, up about a basis point.

* Key economic data for Wednesday includes durable goods orders and new home sales for May. (Editing by Chris Gallagher)