NEW YORK, July 10 (Reuters) - U.S. Treasury yields drifted lower on Wednesday, as Federal Reserve Chair Jerome Powell's less dovish comments a day earlier did not alter expectations that the central bank will start its easing cycle later this year.

Powell's remarks on Tuesday triggered a selloff in Treasuries that pushed their yields higher.

Investors are also looking ahead to the U.S. Treasury's auction of $39 billion in benchmark 10-year notes.

Powell, in prepared remarks to the U.S. Senate Banking Committee on Tuesday, said the Fed will not be cutting rates until it gains "greater confidence" that inflation is headed toward the 2% target. For now though, inflation remains above the 2% goal but the most recent monthly readings have shown further, modest progress, he noted.

The U.S. central bank chief on Wednesday speaks before the House Financial Services Committee for his semi-annual monetary policy testimony.

"Powell didn't really change anybody's perspective," said Stan Shipley, managing director and fixed-income strategist at Evercore ISI in New York.

"Not many people thought that the Fed is going to tighten. Everybody believes the next move is that they would ease but we don't know exactly when."

In late morning trading, the U.S. 10-year yield was flat at 4.293%.

U.S. 30-year yields dipped 1 basis point to 4.485% .

The two-year yield, which typically reflects interest rate expectations, edged lower as well, down at 4.62%.

The yield curve, measuring the difference between U.S. two- and 10-year yields, steepened slightly, or marginally narrowed its inversion, to minus 33.2 bps.

The curve has been on a steepening trend since late June. Investors believe that the front end of the curve has peaked and the Fed is not going to need to raise interest rates again. That's holding the front end of the curve relatively steady.

U.S. rate futures markets are pricing in 50 basis points (bps) of rate cuts by the end of December, with the first probably in September, according to LSEG calculations.

Later on Tuesday, the 10-year note auction is expected to be well-received following a strong three-year note sale on Tuesday. Last month's 10-year note sale was also successful.

"We'll be closely watching the indirect bidder award...given what that might suggest about the potential for renewed demand from a buyer base that has largely taken a step back over the last couple of years," wrote BMO Capital in a research note. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Sharon Singleton)