(Adds quote, updates prices) By Alden Bentley NEW YORK, July 14 (Reuters) - Treasury yields fell to session lows on Wednesday after the release of remarks by Federal Reserve Chairman Jerome Powell that suggested tapering was still a ways off and stuck with a transitory inflation message even as data showed producer prices surged in June. The U.S. job market "is still a ways off" from the progress the Federal Reserve wants to see before reducing its support for the economy, while current high inflation will ease "in coming months," Powell said in remarks prepared for delivery at a congressional hearing on Wednesday. “The testimony conveys a stay-the-course attitude," said Roberto Perli, head of global policy research at Cornerstone Macro. Benchmark 10-year yields fell 4 basis points on the day to 1.376%. The yield curve between two-year and 10-year notes flattened to 114 basis points. Inflation expectations continued to climb, with breakeven rates on five-year Treasury Inflation-Protected Securities (TIPS) rising to 2.60%. They are up from around 2.45% on Monday. The producer price index for final demand increased 1.0% last month after rising 0.8% in May, the Labor Department said on Wednesday. In the 12 months through June, the PPI surged 7.3%. That was the biggest year-on-year rise since in November 2010 and followed a 6.6% advance in May. It comes after data on Tuesday showed that U.S. consumer prices in June rose by the most in 13 years amid supply constraints and a continued rebound in costs of travel-related services from pandemic-depressed levels as the economic recovery gathered momentum. July 14 Wednesday 9:46 AM New York / 1346 GMT Price Current Net Yield % Change (bps) Three-month bills 0.05 0.0507 0.000 Six-month bills 0.05 0.0507 0.000 Two-year note 99-201/256 0.2349 -0.020 Three-year note 99-206/256 0.4406 -0.029 Five-year note 100-76/256 0.8138 -0.034 Seven-year note 100-212/256 1.1259 -0.040 10-year note 102-72/256 1.3761 -0.039 20-year bond 105-52/256 1.9329 -0.030 30-year bond 108-64/256 2.0061 -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 10.00 0.25 spread U.S. 5-year dollar swap 8.25 0.50 spread U.S. 10-year dollar swap -1.25 -0.50 spread U.S. 30-year dollar swap -28.25 -0.75 spread (Reporting by Alden Bentley) Our Standards: The Thomson Reuters Trust Principles.