* Fed pares back economic outlook

* Weak retail sales, Fed expectations boost bonds

* 30-year auction met with solid demand (Updates prices)

NEW YORK, July 14 (Reuters) - U.S. Treasuries climbed on Wednesday as weak retail sales data and a pared-back economic outlook from the Federal Reserve boosted demand for safe-haven debt.

Treasuries extended gains in the afternoon after members of the U.S. central bank said in the minutes from their June policy meeting that they should be ready to consider additional steps to boost the economy if a softening outlook takes a noticeable turn for the worse. For details see [ID:nN14148574]

Early price gains had already been extended after an auction of $13 billion of reopened 30-year bonds was met with comparatively solid demand.

The Fed “lowered the projections for some key economic variables,” said Ward McCarthy, chief financial economist at Jefferies & Co in New York, adding “at this (June) meeting they were starting to discuss some options that they may take if the economy were to appear to be headed for another recession.

“It suggests that rates are going to stay low for a long time and if necessary the Fed will try to conjure up some other ways to support the economy,” McCarthy said.

Data early in the day established the market’s bullish tone. Sales at U.S. retailers fell for a second month in June, bringing safe-haven assets such as Treasuries into favor. [ID:nN14122226]

U.S. benchmark 10-year Treasury notes US10YT=RR traded 21/32 higher in price to yield 3.05 percent, breaking below key market resistance at 3.06 percent and down from 3.12 percent late on Tuesday.

The government’s 30-year bond auction on Wednesday was the last of this week’s $69 billion in coupon debt sales. The first two auctions attracted poor demand from investors wary of the low yields offered, although buyers stepped up for Wednesday’s auction.

“Everything about it was a good auction. There were definitely concerns going into it just because of its place so far out on the yield curve,” said Mary Ann Hurley, vice president of fixed-income trading at D.A. Davidson & Co in Seattle.

The 30-year bond US30YT=RR traded up 1-11/32 in price, yielding 4.03 percent versus Tuesday's 4.11 percent.

Investors are watching to see if stocks can build on their recovery from recent lows during this earnings season, which could lead to a reversal of the cash flow to safe-haven assets in recent months.

More data like Wednesday’s retail sales report would not help a revival in appetite for risky assets, however.

“I think there is just enough uncertainty around that is keeping a bid in bonds,” said Kim Rupert, managing director of global fixed-income analysis at Action Economics LLC in San Francisco.

Expectations the Fed will hold benchmark interest rates at their current level near zero for the foreseeable future gave a significant boost to the short end of the Treasury curve.

Two-year Treasury notes US2YT=RR traded 4/32 higher in price to yield 0.61 percent, the lowest in over a week and down from 0.67 percent late on Tuesday. The notes were on track for the biggest daily dip in yield in nearly six weeks. (Additional reporting by Burton Frierson; Editing by Chizu Nomiyama)