(Recasts with 30-year auction, adds quote, updates prices) By Karen Brettell NEW YORK, July 13 (Reuters) - Long-dated U.S. Treasury yields rose on Tuesday after the Treasury Department drew weak demand for a $24 billion sale of 30-year bonds, which came after data showed inflation jumped more than expected in June. The bonds sold at a high yield of 2.00%, more than two basis points above where the debt had traded before the auction. The auction “was a face-plant. All of the metrics were very poor,” Kim Rupert, managing director for fixed income at Action Economics, said in a note. “The much hotter-than-expected CPI report and the subsequent curve flattening did not do the auction any favors.” The yield curve had flattened earlier on Tuesday after data showed U.S. consumer prices rose by the most in 13 years in June amid supply constraints and a continued rebound in the costs of travel-related services from pandemic-depressed levels as the economic recovery gathered momentum. The consumer price index increased 0.9% last month, the largest gain since June 2008, after advancing 0.6% in May. The so-called core CPI surged 4.5% on a year-on-year basis, the largest increase since November 1991, after rising 3.8% in May. "Yet another blowout inflation reading makes it increasingly difficult for the Fed to stick to its position that elevated inflation readings are merely "transitory"," James Knightley, chief international economist at ING, said in a report. Benchmark 10-year yields jumped to 1.398% after the auction. The yield curve between two-year and 10-year notes steepened to 115 basis points, after earlier flattening to 109 basis points in the wake of the inflation data. Thirty-year note yields rose to 2.024% from 1.97% before the auction. The yield curve between five-year notes and 30-year bonds steepened to 120 basis points. Fed Chair Jerome Powell is likely to be asked about the inflation data when he testifies before Congress on Wednesday and Thursday and his comments will be evaluated for any indications that he is becoming more concerned about rising price pressures. “There is certainly some concern that some of these price increases are coming in much quicker than expected, but you can argue that a lot of this is due to the recovery,” said Gennadiy Goldberg, an interest rate strategist at TD Securities in New York. Minutes from the Fed’s June policy meeting released last week showed that Fed officials last month felt substantial further progress on the U.S. economic recovery "was generally seen as not having yet been met," but agreed they should be poised to act if inflation or other risks materialized. July 13 Tuesday 1:30PM New York / 1730 GMT Price Current Net Yield % Change (bps) Three-month bills 0.05 0.0507 0.000 Six-month bills 0.0525 0.0532 0.002 Two-year note 99-191/256 0.2548 0.022 Three-year note 99-184/256 0.4695 0.039 Five-year note 100-48/256 0.8363 0.040 Seven-year note 100-168/256 1.1516 0.036 10-year note 102-20/256 1.3981 0.035 20-year bond 104-232/256 1.9505 0.035 30-year bond 107-212/256 2.0241 0.031 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 7.50 0.25 spread U.S. 3-year dollar swap 9.50 -2.00 spread U.S. 5-year dollar swap 8.00 0.00 spread U.S. 10-year dollar swap -0.75 0.00 spread U.S. 30-year dollar swap -27.50 0.00 spread (Reporting by Karen Brettell; Editing by Andrea Ricci and Dan Grebler) Our Standards: The Thomson Reuters Trust Principles.