* Yields fall as Fed seen staying accommodative
* Curve steepens as investors readjust positions
* Treasury to sell $13 bln 30-year TIPS
* Fed to buy $2.25 bln-$2.75 bln notes due 2021-2024
NEW YORK, June 19 (Reuters) - U.S. Treasuries yields fell to two-week lows on Thursday, a day after the Federal Reserve struck a more dovish tone than expected at its June meeting, soothing investors that the central bank will remain accommodative for some time. The Federal Reserve on Wednesday expressed confidence the U.S. economic recovery was on track and hinted at a slightly more aggressive pace of interest rate increases starting next year, but added that a recent uptick in inflation was not a concern. Stronger-than-expected consumer price data on Tuesday had led some investors to expect the Fed would hint towards interest rate hikes sooner than had been previously expected. "There was some hope that they would be more hawkish, but they are ignoring the uptick in inflation," said Charles Comiskey, head of Treasuries trading at Bank of Nova Scotia in New York. Now "people are adjusting their positions." The inflation increase may, however, help the Treasury sell $13 billion in new 30-year Treasury Inflation-Protected Securities (TIPS) later on Thursday. Benchmark 10-year notes rose 5/32 in price to yield 2.57 percent, down from 2.62 percent late on Wednesday. Five-year notes gained 3/32 in price to yield 1.66 percent, down from 1.72 percent. The longer-dated yield curve also continued to steepen as investors unwound bets on further flattening and added positions for more steepening. The curve between 5-year notes and 30-year bonds steepened to 175 basis points, up from five-year lows of 165 basis points on Monday. The Fed will buy between $2.25 billion and $2.75 billion in notes due from 2021 to 2024 on Thursday.
(Reporting by Karen Brettell; Editing by Andrea Ricci)