TREASURIES-U.S. bond yields little changed before FOMC minutes

* Investors await clues on rate-hike path in Dec FOMC minutes

* U.S. Dec ISM manufacturing data beat expectations

* U.S. 2-year yield touches 9-year peak

* Companies to sell $35 bln high-grade bonds this week - IFR

(Updates market action after ISM data) NEW YORK, Jan 3 (Reuters) - U.S. Treasury yields were little changed on Wednesday in advance of minutes of last month's Federal Reserve meeting, where policy makers decided to raise short-term interest rates for a third time in 2017 and upgraded their view on U.S. economic growth. Bond markets around the world stabilized from Tuesday's selloff tied to hawkish comments from two European Central Bank officials, which propelled the 10-year German Bund yield to a two-month peak and the five-year U.S. yield to its highest level since April 2011. Some investors said Tuesday's yield rise was partly a reversal of the drop linked to typical year-end buying. "A majority of yesterday's move was a move back of what happened over the year-end holiday," said Jason Celente, senior portfolio manager at Insight Investment in New York. Wednesday's initial drop in U.S. yields faded following a stronger-than-forecast report on U.S. manufacturing from the Institute for Supply Management. The industry group's index on U.S. factory activity unexpectedly rose to 59.7 last month from 58.2 in November. Analysts polled by Reuters forecast the ISM factory index likely came in at 58.1. Evidence of further expansion in the factory sector will likely support the notion of steady U.S. economic growth, perhaps allowing the Fed to increase rates up to three times in 2018. Investors are also awaiting clues on the path of future rate hikes in the minutes of the Dec. 12-13 meeting of the Federal Open Market Committee (FOMC). They hope the minutes, set for release at 2 p.m. (1900 GMT), will provide a better sense of the FOMC's view of business activity before the passage of the biggest rewrite of the U.S. tax code in 30 years. "They want to know what the Fed was thinking about before tax reform was passed," Celente said. At 10:37 a.m. (1526 GMT), benchmark 10-year Treasury yield was down 0.5 basis point at 2.460 percent, while the 30-year yield was down 0.6 basis point at 2.806 percent. The two-year yield reached a nine-year high at 1.939 percent. It was last up 0.8 basis point to 1.931 percent. Tuesday's yield spike also stemmed from bond dealers hedging the slate of corporate bonds they underwrite this week, analysts said. Companies are expected to sell $35 billion in investment-grade corporate bonds this week, according to IFR, a Thomson Reuters unit. January 3 Wednesday 10:41AM New York / 1541 GMT Price

US T BONDS MAR8 151-31/32 7/32 10YR TNotes MAR8 123-192/256 2/32 Price Current Net Yield % Change


Three-month bills 1.3925 1.4168 -0.030 Six-month bills 1.56 1.5942 -0.016 Two-year note 99-230/256 1.9273 0.004 Three-year note 99-158/256 2.0094 -0.006 Five-year note 99-110/256 2.2465 -0.003 Seven-year note 99-56/256 2.3719 -0.010 10-year note 98-52/256 2.4561 -0.009 30-year bond 98-248/256 2.8011 -0.009 YIELD CURVE Last (bps) Net

Change (bps)

10-year vs 2-year yield 52.70 -1.30 30-year vs 5-year yield 55.40 -1.15


Last (bps) Net

Change (bps)

U.S. 2-year dollar swap 17.50 -0.75


U.S. 3-year dollar swap 18.25 -0.25


U.S. 5-year dollar swap 3.25 0.00


U.S. 10-year dollar swap -2.25 0.00


U.S. 30-year dollar swap -21.25 0.25


(Reporting by Richard Leong; Editing by David Gregorio and Nick Zieminski)