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TREASURIES-Prices gain before Fed statement

* Fed meeting in focus for rate path clues

* Solid German debt auction boosts Treasury prices

NEW YORK, Sept 20 (Reuters) - U.S. Treasuries prices gained slightly on Wednesday as investors awaited the conclusion of the Federal Reserves two-day meeting for new indications on whether the U.S. central bank is likely to raise interest rates against this year. The U.S. central bank is widely expected to announce that it will begin paring its bond holdings, and many analysts and investors expect the reductions may begin in October. The Fed will also update its economic projections, known as its dot plot, which will be used to evaluate whether an interest rate increase in December is likely. Everyone will be watching the dot plot, said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets in New York. Even if they dont decrease the dots for 2018 and 2019, any backup in yields will ultimately prove to be a buying opportunity because there is still a great deal of economic uncertainty at this point, and theres a lot of data between now and the December meeting, Lyngen said.

Benchmark 10-year notes were last up in 3/32

price to yield 2.232 percent, from 2.243 percent on Tuesday. Traders will also be closely watching any comments the Fed makes on inflation, which has remained below the Feds 2-percent target. Expectations of a December rate hike increased after data last Thursday showed that U.S. consumer prices accelerated in August. Futures interest rate traders are now pricing in a 62-percent chance of a December rate increase, according to the CME Groups FedWatch Tool. Traders are also looking for any clarity on personnel changes as the end of Fed Chair Janet Yellens term approaches and after the resignation of Vice Chair Stanley Fischer earlier this month. A solid auction of German 30-year government debt helped boost Treasury prices earlier on Wednesday.

(Editing by Nick Zieminski)

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