(Recasts, adds new comment, U.S. inflation data, table, updates prices) * U.S. inflation rise slows in July * U.S. 10-year inflation breakeven rate slips * U.S. yield curve flattens after steepening for 4 straight days By Gertrude Chavez-Dreyfuss and Yoruk Bahceli NEW YORK/LONDON, Aug 11 (Reuters) - U.S. Treasury yields slipped from their highs on Wednesday in choppy trading, with those on the 10-year falling from four-week peaks, after data showed a slight moderation in consumer prices for the month of July in the world"s largest economy. Yields overall were mixed, with those on the long end, slightly higher on the day, and the shorter-dated ones lower. The yield curve, a gauge of economic sentiment and rate move expectations, flattened to 110.80 basis points, as measured by the spread between two-year and 10-year yields. That curve had steepened in the four previous sessions. U.S. yields were a lot higher before the inflation data, bolstered by comments from two Federal Reserve officials on Tuesday, suggesting that the central bank could soon reduce or taper its asset purchases. Tapering tends to push Treasury debt prices lower and yields higher because it means the Fed is buying less of those bonds. U.S. consumer price increases slowed in July but inflation overall remained historically high. The consumer price index increased 0.5% last month after climbing 0.9% in June. Excluding the volatile food and energy components, the CPI rose 0.3% after increasing 0.9% in June. "At the end of the day this is a more moderate reading than expected, especially on the core, and that was driven by rents and rents were the big worry ... if rents began to accelerate then you"d certainly see some concern," said Gennadiy Goldberg, senior rates strategist, at TD Securities in New York. "But it doesn"t seem that that"s coming at the moment and I think that"s going to make the Fed a little bit more confident that they can let inflation run a little bit hotter in the near term without having to worry about overshooting and having to tighten rather quickly to cut off inflation," he added. Additional spending mooted by President Joe Biden"s infrastructure plans could further complicate the inflation outlook, however, said Jens Peter Sorensen, chief analyst at Danske Bank. The U.S. Senate on Tuesday passed a massive infrastructure bill and kicked off debate on a further $3.5 trillion spending blueprint for climate change, universal preschool and affordable housing. The yield on 10-year Treasury notes was unchanged to 1.342%. Earlier in the session, the 10-year yield hit a four-week high of 1.378% The yield on the 30-year Treasury bond was up 1.6 basis points to 2.000%. The two-year U.S. Treasury yield, was down 1 basis points at 0.229%. The 10-year TIPS breakeven rate, the inflation average expected per year for the next decade, was last at 2.385%, slightly down from 2.391% on Tuesday. Later on Wednesday, the U.S. Treasury will auction $41 billion in U.S. 10-year notes. That will follow a strong U.S. 3-year note sale that was boosted by the decline in bond prices and persistent safe-haven demand over the surge in global virus cases. August 11 Wednesday 9:29 AM New York / 1329 GMT Price Current Net Yield % Change (bps) Three-month bills 0.055 0.0558 0.000 Six-month bills 0.055 0.0558 0.000 Two-year note 99-204/256 0.2285 -0.010 Three-year note 99-194/256 0.4565 -0.019 Five-year note 99-24/256 0.8115 -0.012 Seven-year note 99-56/256 1.1168 -0.006 10-year note 102-152/256 1.3405 -0.002 20-year bond 105-180/256 1.9023 0.009 30-year bond 108-100/256 1.9995 0.016 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 8.00 -0.50 spread U.S. 3-year dollar swap 8.75 -2.50 spread U.S. 5-year dollar swap 8.25 -0.25 spread U.S. 10-year dollar swap 0.50 -0.50 spread U.S. 30-year dollar swap -29.50 -0.25 spread (Reporting by Gertrude Chavez-Dreyfuss in New York and Yoruk Bahceli in London; Additional reporting by Karen Brettell in New York; Editing by Sujata Rao and David Evans) Our Standards: The Thomson Reuters Trust Principles.