TREASURIES-US yields extend rise as Fed stands pat, cites elevated inflation

NEW YORK, Jan 28 (Reuters) - U.S. Treasury yields extended their gains on Wednesday after the Federal Reserve left interest rates steady, as widely expected, and noted inflation remained elevated and the labor market continued to stabilize.

Following the Fed decision, the benchmark 10-year yield gained 4.2 basis points to 4.265% US10YT=RR, compared with 4.259% just before.

U.S. two-year yields, which reflect interest rate expectations, edged higher by 2 bps to 3.590% US2YT=RR. They were at 2.587% before the Fed statement.