NEW YORK, Sept 8 (Reuters) - Longer-dated U.S. government bond yields slipped on Wednesday coming off a two-day climb after labor market data and ahead of an auction by the Treasury in 10-year notes. Yields had climbed in the wake of Friday"s government payrolls report, which missed expectations, but underlying measures such as wage growth were fairly strong and investors viewed the report as unlikely to move the U.S. Federal Reserve off track to begin tapering 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. "What is actually happening here across the board is a reassessment of the environment, a reassessment of the inflation environment, a reassessment of are we going into a bit of a stagflation environment is really the concern that investors are going to be having," said Steven Ricchiuto, U.S. chief economist at Mizuho Securities USA LLC in New York. "You have a little evidence here of quits going up, you have a little evidence of employment not going up that much so you are in an environment where you begin to question whether or not the labor market is reaching full employment at higher levels of unemployment than it was doing in previous business cycles." The yield on 10-year Treasury notes was down 1.6 basis points to 1.355%. An auction of $38 billion is scheduled for 1 p.m. ET (1800 GMT) The yield on the 30-year Treasury bond was down 1.9 basis points to 1.966%. 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. 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." 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 113.5 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 10:27AM New York / 1427 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 99-202/256 0.4458 -0.007 Five-year note 99-174/256 0.8158 -0.005 Seven-year note 100 1.125 -0.013 10-year note 99-8/256 1.3545 -0.016 20-year bond 97-176/256 1.8897 -0.017 30-year bond 100-196/256 1.966 -0.019 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 10.00 -1.75 spread U.S. 5-year dollar swap 8.75 0.25 spread U.S. 10-year dollar swap 1.50 0.00 spread U.S. 30-year dollar swap -26.50 0.50 spread (Reporting by Chuck Mikolajczak Editing by Nick Zieminski) Our Standards: The Thomson Reuters Trust Principles.