(Recasts with bond auction results, updates yields, adds analyst comments, upcoming auctions, reverse repo volume) By Karen Pierog CHICAGO, Aug 12 (Reuters) - U.S. Treasury yields ticked slightly higher on Thursday after a 30-year bond auction failed to give the market any convincing direction, while cash flowing into to an overnight Federal Reserve facility hit a new record high. The 30-year yield, which hit a session high of 2.035% following the auction, was last up less than a basis point at 2.0081%. The benchmark 10-year yield was last less than a basis point higher at 1.3607%. The $27 billion of 30-year bonds were sold at a high yield 2.040% and with a bid-to-cover ratio, a gauge of demand, of 2.21. "You had a really pretty normal result relative to average so I think the market looked through the auction results and just kind of kept on doing what it was doing," said Tom Simons, a money market economist at Jefferies in New York, adding that a really weak or really strong auction would have had the potential to move rates more. Yields, meanwhile, were continuing their slow march higher ahead of an expected announcement by the Fed on tapering its asset purchases and with the latest inflation readings, Simons said. U.S. producer prices increased more than expected in July, suggesting inflation could remain high as strong demand fueled by the economic recovery from the coronavirus pandemic continues to hurt supply chains. That report on Thursday from the Labor Department followed data on Wednesday that showed U.S. consumer price increases slowed in July even as they remained at a 13-year high on a yearly basis amid tentative signs inflation has peaked as supply-chain disruptions caused by the pandemic work their way through the economy. Inflation expectations have risen this week with the breakeven inflation rate on five-year U.S. Treasury Inflation-Protected Securities (TIPS) climbing to 2.616% on Thursday. It was 2.552% on Monday. The Labor Department also reported on Thursday that initial claims for state unemployment benefits fell 12,000 to a seasonally adjusted 375,000 for the week ended Aug. 7. "It"s the third decline in a row, so that"s giving people more optimism that the next jobs figures will be reasonably strong," said Kathy Jones, chief fixed income strategist at the Schwab Center for Financial Research in New York. The U.S. Treasury on Thursday announced auctions for $27 billion of 20-year bonds next Wednesday and $8 billion of 30-year TIPS on Aug. 19. Auctions earlier this week were solid, with Wednesday"s 10-year note auction the strongest since 2012 possibly as a result of foreign demand, Citi analysts said in a research report on Thursday. The amount of cash pouring into the Fed"s overnight reverse repurchase agreement facility hit a new record high of $1.087 trillion on Thursday, topping the previous record of $1.039 trillion set on July 30. A closely watched part of the yield curve that measures the gap between yields on two- and 10-year Treasury notes was last 2.29 basis points steeper at 113.60 basis points. August 12 Thursday 2:19PM New York / 1819 GMT Price Current Net Yield % Change (bps) Three-month bills 0.05 0.0507 0.000 Six-month bills 0.05 0.0507 -0.002 Two-year note 99-206/256 0.2247 0.004 Three-year note 99-196/256 0.4538 0.003 Five-year note 99-10/256 0.8229 0.011 Seven-year note 99-40/256 1.1263 0.007 10-year note 98-248/256 1.3607 0.002 20-year bond 105-128/256 1.9142 0.006 30-year bond 108-48/256 2.0081 0.004 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 8.75 0.25 spread U.S. 3-year dollar swap 10.00 1.00 spread U.S. 5-year dollar swap 8.50 0.00 spread U.S. 10-year dollar swap 0.25 -0.75 spread U.S. 30-year dollar swap -29.25 0.50 spread (Reporting by Karen Pierog; editing by Jonathan Oatis and Chizu Nomiyama)