* Yields rise from four-month lows after Fed statement
* Fed reiterates bond purchases at $85 bln per month
* Friday's payroll number next market focus
By Karen Brettell
NEW YORK, May 1 U.S. Treasuries yields edged up
from four-month lows on Wednesday after the Federal Reserve said
it would stick to its plan to buy $85 billion in bonds each
month, giving few new indications of the response to worsening
The U.S. central bank cited risks to growth from recent
budget tightening in Washington and reiterated that unemployment
is still too high for policymakers'comfort.
Treasuries yields had rallied heading into the meeting as
some speculated that the Fed might adopt a markedly more dovish
tone or indicate that it might increase its bond purchases as
consumer inflation holds below the Fed's target of 2 percent.
"I don't think we've gotten anything terribly new," said
Greg Faranello, a Treasuries trader at Societe Generale in New
York. "Their statement that they are prepared to reduce or
increase purchases basically tells you that they are somewhat
economic sensitive at this point."
Benchmark 10-year Treasuries were last up 11/32
in price to yield 1.637 percent, after falling as low as 1.614
percent before the Fed statement, the lowest since December. The
yields have dropped from around 1.67 percent earlier on
The next focal point for the market will be Friday's
non-farm payrolls data for April, which is likely to show
employers added 145,000 jobs, according to the median estimate
of economists polled by Reuters. The data will be scoured for
any signs of weakness after March's number came in well below
expectations, at 88,000.
The ADP National Employment Report earlier on Wednesday said
the U.S. private sector added 119,000 jobs in April, well below
economists' expectations in a Reuters poll for 150,000,
. An industry report said the pace of U.S.
manufacturing growth also slowed in April.