(Adds tariff details, quote; updates prices)
* Trump signs plan to impose tariffs on Chinese imports
* Bank of England keeps rates steady
NEW YORK, March 22 (Reuters) - U.S. Treasury prices gained on Thursday on rising risk aversion as President Donald Trump signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China. Under the terms of the memorandum, Trump will target the Chinese imports only after a consultation period, a measure that will give industry lobbyists and legislators a chance to water down a proposed target list which runs to 1,300 products. "There seems to be too much uncertainly about what all these trade tariffs are going to lead to, said Tom di Galoma, a managing director at Seaport Global Holdings in New York.
Benchmark 10-year notes gained 18/32 in price to
yield 2.841 percent, down from 2.907 percent on Wednesday. The yield curve between two-year and 10-year notes flattened to 55 basis points from 58 basis points. Declining stocks boosted demand for lower-risk bonds.
Concerns about a more hawkish Federal Reserve also eased after the U.S. central bank on Wednesday raised interest rates and forecast two more hikes for 2018, instead of the three that many market participants had expected. "The Fed didnt really surprise yesterday. Some people were looking for 2018 to be possibly four rate hikes, and its still a possibility, but for now it just keeps the status quo," said Justin Lederer, an interest rate strategist at Cantor Fitzgerald in New York. Policymakers were largely split as to whether a total of three or four rate hikes would be needed this year in their rate projections, known as the dot plot because the outlooks are plotted on a chart. Some of Thursday's rally was also driven by investors that had bet on higher yields after the Fed meeting covering their positions, said Lederer. The Bank of England kept rates steady on Thursday but two of its policymakers unexpectedly voted for an immediate rate rise, in a statement that will boost investors' confidence that borrowing costs will rise in May.
(Editing by Lisa Shumaker)