TREASURIES-Unchanged, Fed rate statement in focus

TOKYO, Jan 31 (Reuters) - U.S. Treasuries sat tight in Asia on Wednesday, with the benchmark 10-year yield hovering near a 5 1/2-month high as investors awaited clues on the interest rate outlook after a Federal Reserve policy meeting ending later in the session.

With the Fed expected to keep rates unchanged at 5.25 percent for the fifth straight meeting, the market was waiting to scrutinise the post-meeting statement for any changes in wording that could suggest growing optimism in the U.S. economy.

Investors were also awaiting a first reading of fourth-quarter economic growth due at 1330 GMT. Growth is expected to have risen at a 3.0 percent annual pace, accelerating from a 2.0 percent pace in the third quarter.

"If the GDP data is strong and the Fed comes out with a hawkish statement, we could see some selling," said a dealer at a U.S. brokerage in Tokyo.

A recent run of solid data has bolstered the market's view that the U.S. economy has bounced back from a slowdown last year, forcing investors to cut expectations that the Fed might lower rates this year.

March 10-year Treasury futures TYc1 crept up 0.5/32 to 106-15/32, but remained close to 106-6.5/32 hit last week, its lowest level since mid-August.

The 10-year yield US10YT=RR was at 4.878 percent, unchanged from New York and staying within range of 4.910 percent touched last week, its highest since Aug. 16.

The two-year yield US2YT=RR was at 4.971 percent, barely moved from Tuesday.

Following the GDP figures, investors will focus on the Institute of Supply Management's manufacturing survey for this month due on Thursday as well as monthly non-farm payrolls on Friday for more evidence the U.S. economy is enjoying solid growth.

If such a view hardens, one dealer said that a climb in the 10-year yield as high at 4.95 percent was possible this week.

The Treasury announces details of its quarterly refunding auctions on Wednesday.

Economists at Wrightson ICAP expect a trimming in three-year notes to $18 billion from $19 billion in the previous quarter as strong tax revenues prompt the Treasury to cut back on borrowing.

Issuance of 10-year notes is expected to remain unchanged at $13 billion, while the Treasury is expected to offer $10 billion or more in 30-year bonds.

Analysts said the Treasury could boost long bond issuance slightly to improve liquidity in the maturity.