(Updates prices, adds auction results, Williams comments, Beige Book) By Chuck Mikolajczak NEW YORK, Sept 8 (Reuters) - Longer-dated U.S. government bond yields fell on Wednesday and touched a session low after a strong auction by the Treasury of 10-year notes and the Fed"s Beige Book of economic activity. Yields had climbed for two straight days in the wake of Friday"s government payrolls report, which fell well short of expectations, but underlying measures such as wage growth were fairly strong and investors viewed the report as unlikely to derail the U.S. Federal Reserve in starting to taper its bond purchases by year-end. Labor market data on Wednesday showed job openings in the U.S. rose to 10.934 million in July, up from the revised 10.185 million in the prior month. Yields on the benchmark 10-year note fell further after a strong auction of $38 billion by the Treasury. "It did go off quite well, last month’s was stellar and today’s was just shy of that," said Kim Rupert, managing director of global fixed income analysis at Action Economics in San Francisco. "There has been ongoing fears that maybe demand for Treasuries is going to dry up, we’ve heard that for a long time and we continue to see strong results." The yield on 10-year Treasury notes was down 3.9 basis points to 1.333%. Treasury will also offer $24 billion in 30-year bonds on Thursday. Analysts at Wells Fargo note that yields of both the 10-year and 30-year have tended to fall on 30-year auction days over the past year. The yield on the 30-year Treasury bond was down 3.6 basis points to 1.950%. New York Fed President John Williams said on Wednesday that if the U.S. economy continues to improve, it may be "appropriate" for the central bank to start pulling back on the rate of its asset purchases this year. But the Fed"s Beige Book of anecdotal economic conditions said the economy "downshifted slightly" in August as concerns mounted over how rising coronavirus cases would impact the economic recovery, and the 10-year subsequently touched a session low of 1.327%. Congressional debate is expected to heat up in the coming weeks over the debt ceiling issue with Treasury due to run out of money sometime in October. Without an extension to Treasury"s borrowing limits, the risk of a technical default will weigh on short-term debt. A $30 billion 8-week auction, also on Thursday, is expected to more likely reflect the risk the market sees around the possible expiration of the U.S. debt ceiling. On Wednesday, U.S. Treasury Secretary Janet Yellen again pressed Congress to address the limit on U.S. government borrowing, saying the "most likely outcome is that cash and extraordinary measures will be exhausted during the month of October." U.S. House Speaker Nancy Pelosi said Democrats will not include a provision to raise the debt ceiling in a $3.5 trillion "reconciliation" spending measure they aim to pass in the coming months. A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations, was at 111.3 basis points after steepening to a near two-month high of 116.4 on Tuesday. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 0.4 basis points at 0.218%. September 8 Wednesday 2:33PM New York / 1833 GMT Price Current Net Yield % Change (bps) Three-month bills 0.045 0.0456 0.000 Six-month bills 0.0525 0.0532 0.002 Two-year note 99-209/256 0.2182 -0.004 Three-year note 99-206/256 0.4406 -0.012 Five-year note 99-188/256 0.8046 -0.016 Seven-year note 100-28/256 1.1086 -0.029 10-year note 99-60/256 1.3325 -0.039 20-year bond 98 1.8706 -0.036 30-year bond 101-36/256 1.9495 -0.036 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 9.00 0.50 spread U.S. 3-year dollar swap 10.25 -1.50 spread U.S. 5-year dollar swap 8.75 0.25 spread U.S. 10-year dollar swap 2.00 0.50 spread U.S. 30-year dollar swap -26.00 1.00 spread (Reporting by Chuck Mikolajczak Editing by Nick Zieminski) Our Standards: The Thomson Reuters Trust Principles.