TREASURIES-U.S. yields rise in global sell-off; no new Fed clues

* Fed gives nod to weak data, no fresh clues on rate hike

* Traders brush off slim 0.2 pct U.S. GDP growth in Q1

* U.S. sells $29 bln 7-year notes to solid demand

* Less dismal data, failed auction knock European bonds

(Updates market action, adds new quote)

By Richard Leong

NEW YORK, April 29 (Reuters) - The U.S. Treasuries market

sagged on Wednesday with benchmark yields hitting their highest

in six weeks amid a global bond sell-off, as the U.S. Federal

Reserve acknowledged a softening in economic growth but gave no

fresh clues on when it may raise rates.

Traders blamed the dumping of Treasuries, German Bunds and

British Gilts on a combination of factors including less gloomy

economic figures on Europe, a failed five-year German debt

auction and hefty U.S. bond supply this week.

"A lot of the action was driven by the sell-off in European

bonds," said Kathy Jones, fixed-income strategist at Charles

Schwab in New York.

U.S. yields had briefly retreated on data showing the U.S.

economy grew a paltry 0.2 percent in the first quarter, below an

already subpar 1.0 percent increase forecast by economists.

The market sell-off quickly resumed as traders brushed off

the disappointing report as the government cited winter weather

and other factors for the poor growth.

The Federal Open Market Committee noted the recent anemic

activity due partly to the harsh winter, supporting the view it

is in no rush to raise rates and stoking some Treasuries

purchases in late trading.

The yield on benchmark 10-year Treasuries notes

was 2.037 percent, up 6.4 basis points from late on Tuesday. It

touched its highest level in six weeks at 2.081 percent.

The 30-year bond yield rose 7.0 basis points at

2.740 percent after hitting a seven-week high at 2.792 percent.

U.S. yields broke above the top end of the trading range set

after the March FOMC meeting when the group downgraded its

economic outlook and view on the pace of future rate hikes.

Interest rates futures implied traders expect the

possible first meeting where the Fed might raise rates is

December. Many analysts pegged September the as Fed's

"lift-off."

Before the FOMC statement, the Treasury Department sold $29

billion in seven-year notes to solid demand, while its $15

billion two-year floating-rate note sale was tad softer than

March.

Earlier, a German five-year government debt sale "failed" as

the total bids for the Bobl issue came in below the amount

offered, as domestic inflation data suggested reduced risk of

the euro zone slipping into deflation.

"Things are getting better there, albeit slowly," said Dan

Heckman, senior fixed income strategist at U.S. Bank Wealth

Management in Kansas City, Missouri.

German 10-year Bund yield hit 0.278 percent, the

highest in six weeks, while British 10-year Gilt yield

jumped to its highest in seven weeks at 1.835

percent.

(Reporting by Richard Leong; Editing by Meredith Mazzilli)