GLOBAL MARKETS- Shares recover as central bankers ease liquidity fears
* Fed officials put brakes on dollar rally
* China's central banks soothe liquidity fears, lifting shares off lows
* U.S. Treasury yields retreat from two-year high
LONDON, June 25 (Reuters) - A late recovery in Chinese stocks and comments by top Federal Reserve officials that eased fears of an imminent end to its stimulus lifted shares and bonds off their lows on Tuesday and cooled a rally in the dollar.
China shares pared recent hefty losses to near 4-1/2-year lows after Chinese central bank officials sought to reassure investors that liquidity would be kept at an appropriate level to support growth.
The dollar and U.S. bond yields came off their peaks after two Fed officials downplayed the notion of an imminent end to monetary stimulus and said on Monday that market reaction was not yet a cause for concern.
Markets - from safe-haven U.S. Treasuries to riskier stocks, credit instruments, and emerging market assets - have tumbled for nearly a week on fears of a credit squeeze in China and an early end to the Fed's massive bond buying programme.
Both sets of comments were seen as likely to soothe market nerves and bring at least a temporary halt to selling.
"After all the moves we've seen in U.S. dollar buying, selling bonds, selling equities, I think we're seeing a retracement now, I think we're going into a consolidation period," said Greg Matwejev, Director of FX Hedge Fund Sales and Trading at Newedge.
In early European trade, the broad FTSEurofirst 300 index FTEU3> gained 0.8 percent to 1,122.44 points, after falling 5.5 percent over the past three trading days.
MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.2 percent but had been as much as 1.2 percent lower on the day.
The dollar dipped 0.15 percent against a basket of major currencies and eased 0.25 percent against its Japanese counterpart, to 95.45 yen.