* 10-year yields break above long-term trendline
* Central banks expected to reduce accomodation
* Fed meeting, U.S. refunding, data in focus
NEW YORK, Jan 29 (Reuters) - U.S. Treasury yields surged to more than three-year highs on Monday after comments from a European Central Bank official added to expectations that central banks globally will reduce stimulus as the economic outlook improves. A break of technical support levels added to bearish sentiment with benchmark 10-year yields rising above the trendline that has marked a more than 30-year bull run dating back to the 1980s. Key levels were taken out, the trend is broken, said Tom di Galoma, a managing director at Seaport Global Holdings in New York. Its probably a realization that the global economy is moving ahead and has quite a bit of steam. Ten-year note yields rose as high as 2.727 percent, the
highest since April 2014. They were last down 12/32
in price to yield 2.707 percent. Central banks are removing support for bond markets as the economic outlook brightens. Dutch central bank president Klaas Knot said on Sunday that "there is no reason whatsoever for the ECB to continue its asset purchase program. Some economists expect the Federal Reserve to raise its economic assessment when it concludes its two-day meeting on Wednesday. That could increase the probability that the U.S. central bank raises interest rates four times this year. Interest rates futures are currently pricing in three or less rate hikes this year, according to the CME Groups FedWatch Tool. The United States will need to increase issuance this year to make up for declining bond purchases by the Fed. On Wednesday the Treasury Department will announce its financing plans for the next two quarters and is expected to announce an increase in the supply of short- and intermediate-dated debt. Traders are also focused on a busy week of data this week, which will culminate in Fridays jobs report for January.
(Reporting by Karen Brettell; Editing by Andrew Hay)