* Treasuries dip after Wednesday's rally
* Tensions in emerging markets abate
* U.S. GDP limits safe-haven bids
* Treasury sold five-,seven-year debt to solid demand
By Sam Forgione
NEW YORK, Jan 30 U.S. Treasuries prices fell slightly on Thursday after policymakers in emerging market nations pledged to take any necessary measures to stabilize their markets, limiting demand for safe-haven bonds.
From Istanbul to Moscow and Brasilia, a fresh round of central bank actions and verbal intervention offered support to emerging market currencies, which calmed some fears after jitters on Wednesday spurred a rally in Treasuries.
"There was a general rebound in risk sentiment," said Jeffrey Young, U.S. interest rate strategist at Nomura Securities International in New York. "Some confidence grew back with the emerging markets story no longer developing."
The renewed hopes for emerging markets came after the Federal Reserve's expected decision on Wednesday to cut its asset purchases by $10 billion to $65 billion a month. The cut removed some support from emerging market economies, leading investors to sell emerging market assets and buy Treasuries.
The rout in emerging market assets led Turkey to hike interest rates to stop capital flight and defend its battered lira currency at a midnight policy meeting Wednesday, a move which did little to calm fears.
Data on Thursday showing solid U.S. economic growth in the fourth quarter also capped appetite for safe-haven bonds.
Gross domestic product grew at a 3.2 percent annual rate in the fourth quarter, the U.S. Commerce Department said on Thursday, in line with economists' expectations but a far stronger performance than anticipated earlier in the quarter.
Despite the slight decline in safe-haven bids, Treasuries pared some lossed after the U.S. Treasury Department sold $35 billion in five-year notes and $29 billion in seven-year debt to solid demand on Thursday.
"The extra demand somewhat halted the bearish momentum and led to a small rally," said Young of Nomura.
Benchmark 10-year Treasury notes were last down 6/32 in price to yield 2.70 percent, compared with a yield of 2.68 percent late on Wednesday. Bond yields move inversely to their prices.
The 30-year Treasury bond was last down 10/32 in price to yield 3.64 percent.
While issues in emerging markets abated on Thursday, the potential for upcoming weakness in the wake of the Fed's cut to its bond-buying kept investors edgy and capped sharper losses on safe-haven bonds.
"The Fed continuing with the asset purchase reduction is very meaningful for the emerging markets," said James Camp, managing director of fixed income at Eagle Asset Management in St. Petersburg, Florida. "It's those risk assets and sort of levered plays that get hit most acutely."
Investors showed their risk appetite by buying stocks. On Wall Street, all three major stock indexes posted gains on Thursday, with the benchmark Standard & Poor's 500 stock index up 1.15 percent.