TREASURIES-US yields pare increase as Fed holds rates with two dissents

NEW YORK, July 30 (Reuters) - U.S. Treasury yields pared their increase on Wednesday after the Federal Reserve decided to hold interest rates steady at the end of a two-day policy meeting, but saw two dissenting votes by governors, the most in more than three decades.

In standing pat for a fifth straight policy meeting, the Fed cited low unemployment and solid labor market conditions. But it noted that economic growth "moderated in the first half of the year," boosting the case to lower rates at a future meeting should that trend continue.

U.S. 10-year yields were last up 1.6 basis points at 4.344% US10YT=RR, while the two-year yield, which reflects interest rate expectations, was flat at 3.873% US2YT=RR.