NEW YORK, Feb 28 (Reuters) - Treasuries yields slid on Wednesday as economic growth in the fourth quarter suggested slightly slower growth while investors await key inflation data that could provide new insight into when the Federal Reserve cuts interest rates.

Gross domestic product increased at a 3.2% annualized rate, a revision slightly lower from the previously reported 3.3% pace, the Commerce Department's Bureau of Economic Analysis said in its second estimate of fourth-quarter GDP growth.

Economists polled by Reuters had expected GDP growth would remain unrevised.

The two-year Treasury yield, which reflects interest rate expectations, fell 6 basis points to 4.652%, while the yield on the benchmark 10-year note slipped 3.1 basis points at 4.284%.

The initial reaction to the GDP data pushed yields lower due to month-end buying, said Tom di Galoma, managing director and co-head of global rates trading at BTIG in New York.

The market is worried that the personal consumption expenditures (PCE) price index, which will be released on Thursday, may come in hotter than expected, echoing the release of the consumer price index (CPI) two weeks ago.

The consumer price index increased 0.3% last month after gaining 0.2% in December, the Labor Department said.

The PCE, the Fed's preferred inflation gauge, will likely show prices rose 0.3% on a monthly basis in January, while core PCE likely rose 0.4%, according to a Reuters poll.

The market is beginning to realize getting inflation down to the Fed's 2% target may prove more difficult than imagined just a few months ago.

The 10-year Treasury's yield could be in the 4.5% to 5.0% range by year-end if inflation remains stuck at its current pace, said Marvin Loh, senior global macro strategist at State Street in Boston.

"If we continue to see spot-threes, spot-fours, it really does make the Fed's job hard in the second half of this year," he said, referring to a core reading of 0.3% to 0.4%.

"Spot-three, spot four is way too high to even get comfortable that you're moving in the right direction."

There is a much closer alignment now between Treasury market expectations and what the Fed has indicated regarding the outlook for interest rate cuts, said Kevin Flanagan, head of fixed income strategy at WisdomTree.

"The Fed finally got the message that without them pushing back, the market was just going to go along its merry way and expect a far more optimistic rate cut path than perhaps what the Fed was thinking," he said.

"It's just been a whole variety of different Fed speakers who have come out suggesting rate cuts are probably coming later this year. The market is finally taking that to heart," he said.

Flanagan sees a possibility of 10-year notes rising to 4.5% as getting inflation down to target proves harder than expected.

Fed funds futures show a 63.4% chance that the Fed starts cutting rates in June, with a 36.4% probability of no cut at all, a sharp reversal from bets on Feb. 1 of a 62% chance of a cut in March, according to CME Group's FedWatch Tool.

Futures traders also are betting on about 82 basis points of cuts by December, a little more than half the amount they anticipated at the end of last year.

The yield on the 30-year Treasury bond was down 2 basis points to 4.420%.

The U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as a recession harbinger, was at -37.0 basis points.

The breakeven rate on five-year U.S. Treasury Inflation-Protected Securities (TIPS) was last at 2.447%.

The 10-year TIPS breakeven rate was last at 2.333%, indicating the market sees inflation averaging 2.3% a year for the next decade. (Reporting by Herbert Lash; editing by Jonathan Oatis)