(Adds context, details, updates prices) By Davide Barbuscia NEW YORK, Jan 23 (Reuters) – U.S. Treasury yields kept creeping up on Monday, further eroding a recent bond rally that some investors think was overdone in reflecting fears that the U.S. economy may soon enter a recession. U.S. bond yields dropped to four-month lows on Thursday last week on expectations that the Federal Reserve, which will hold its next rate-setting meeting on Jan. 31-Feb. 1, will be forced to pivot to a more dovish policy if the U.S. economy shrinks this year, as many fear. But yields – which move inversely to prices – started rising on Friday, and on Monday they kept climbing, with the benchmark 10-year Treasury yield and two-year yields up about four and five basis points, respectively, to 3.524% and 4.238%. “People started to price out the recession,” said Zhiwei Ren, managing director and portfolio…
