* Two-year, three-year note yields highest in three years
* Solid GDP data sparks strong sell-off
* Little new information in Fed statement
* Friday's payroll data next major focus
NEW YORK, July 30 (Reuters) - U.S. Treasuries yields surged on Wednesday and two- and three-year note yields rose to their highest in three years after data showed solid U.S. economic growth, though the Federal Reserve said it is in no rush to raise interest rates. The U.S. central bank pressed ahead with its plan to wind down its bond-buying stimulus and upgraded its assessment of the U.S. economy. It also reiterated that it would likely keep rates near zero for a "considerable time" after its bond buying ends and restated that an "accommodative" policy was needed.
The statement came after data earlier on Wednesday showed second-quarter gross domestic product expanded at a 4.0 percent annual rate as activity picked up broadly, after shrinking at a revised 2.1 percent pace in the first quarter. Previously, first-quarter output was estimated to have shrunk 2.9 percent. The GDP data increased expectations that the Fed is moving closer to an interest rate hike that many expect will occur next year if the economy continues to gain momentum. Expectations are also building that the Fed may adopt a more hawkish tone and offer more details about its exit strategy when it meets next in September, even after Wednesday's statement showed little new information. "We will be expecting more of a hawkish stance in September," said Aaron Kohli, an interest rate strategist at BNP Paribas in New York. "These kinds of numbers should encourage the Fed to be much more assertive." Two-year and three-year note yields, which are among the most sensitive to interest rate changes, rose to their highest levels in more than three years. Two-year notes yields rose as high as 0.58 percent, the highest since May 2011. Three-year note yields increased to a high of 1.06 percent, the highest since April 2011. Benchmark 10-year notes yields rose as high as 2.57 percent, the highest since July 16, and up from 2.47 percent before the data was released. Some saw the bond move as overstated, however, with the U.S. economy still expanding at only a moderate pace. "The reality is that we are still stuck in a 2.0 percent to 2.5 percent growth rate. I think this has less to do with data than it does to positioning, et cetera," said Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York. The Fed did, however, take a modestly more hawkish tone on Wednesday in its wording around inflation, Porcelli noted. "They basically diminished this whole notion of disinflation in their comment." The next major focus will be Friday's jobs report for July. U.S. companies hired 218,000 workers in July, short of what analysts projected and below the previous month's level, a report by a private payrolls processor showed on Wednesday.
(Reporting by Karen Brettell; Editing by Bernadette Baum and Dan Grebler)