NEW YORK, Nov 4 (Reuters) - Longer-dated U.S. Treasury debt

prices fell on Wednesday after the Federal Reserve said it

would hold interest rates steady near zero and reiterated rates

would remain low for an 'extended' period.

With the Fed statement out of the way, investors turned

their attention back to the pending sale of $81 billion in

Treasury notes and bonds next week. Investors often move to

cheapen Treasuries ahead of such auctions.

'The Fed just kicked the can down to the next meeting,

which will now probably be when they remove the 'extended

period' language,' said John Canally, economist at LPL

Financial in Boston.

Benchmark 10-year notes were trading 22/32

lower in price to yield 3.55 percent, up from 3.47 percent late

on Tuesday, while 30-year bonds were 1-16/32 lower

to yield 4.42 percent from 4.33 percent.

This widened the spread between yields on two-year and

10-year notes, taking the Treasury yield curve to its steepest

since late July.

(Reporting by Chris Reese and Ellis Mnyandu; Editing by James

Dalgleish)

((chris.reese@thomsonreuters.com; Tel: +1 646 223 6073;

Reuters Messaging: chris.reese.reuters.com@reuters.net))

-------MARKET SNAPSHOT AT 2:48 p.m. EDT (1948 GMT)------- Dec T-Bond 118-05/32 (-29/32) Dec 10-Year note 117-24/32 (-13/32) Change vs Current Nyk yield Three-month bills 0.05 (+0.00) 0.051 Six-month bills 0.16 (-0.01) 0.162 Two-year note 100-06/32 (+) 0.913 Five-year note 99-29/32 (-06/32) 2.393 10-year note 100-20/32 (-21/32) 3.548 30-year bond 101-10/32(-1-15/32) 4.420 Keywords: MARKETS BONDS

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